Ethereum eyes 65% gains from ‘cycle bottom’ as BlackRock ETH stash crosses $1B
Ethereum’s native token, Ether (ETH), has undergone a tumultuous few months, experiencing significant volatility. In the span of just three months, ETH has seen a depreciation of nearly 50%, plummeting from around $4,100 in December 2024 to approximately $1,750 by March 2025. Despite this sharp decline, market analysts suggest that ETH may be poised for a substantial rebound.
### Potential for a 65% Recovery by June
Technical analysis points to a promising outlook for Ether as it approaches a long-term support zone. Historical trends indicate that previous rebounds from similar support levels have often resulted in dramatic price increases, with past gains exceeding 2,000% and 360% in earlier market cycles. As of March 23, the ETH/USD pair is trading near $2,000, a critical threshold that could potentially lead the price upward to around $3,400 by June — reflecting an expected 65% increase if the market conditions align favorably.
This price level is not only indicative of a historical support area, but it also coincides with the lower edge of Ether’s current descending channel resistance. Conversely, if Ether fails to hold this support, it may face a decline towards the 200-2-week exponential moving average, which is estimated to be around $1,560, potentially signaling further bearish momentum.
### Institutional Confidence Boosted by BlackRock’s Investments
A key factor contributing to Ethereum’s positive outlook is the increasing confidence from institutional investors. BlackRock’s BUIDL fund recently reported holding approximately $1.145 billion worth of Ether, a significant increase from $990 million just a week prior, as noted by data from Token Terminal. This surge in investment signals a growing institutional belief in Ethereum’s capacity to lead the tokenization of real-world assets (RWAs).
While BlackRock’s fund diversifies its allocations across various blockchain networks such as Avalanche, Polygon, and Aptos, Ethereum continues to serve as the primary base layer for their investments. This robust commitment underscores Ethereum’s status as a frontrunner in the emerging sector of asset tokenization.
### Rising Whales and Accumulation Trends
In addition to institutional interest, Ethereum’s bullish narrative is reinforced by a notable uptick in accumulation among large-scale investors, often referred to as “whales.” Data from Nansen indicates that since March 12, 2024, addresses holding between 1,000 and 10,000 ETH have expanded their holdings by 5.65%, while the cohort holding between 10,000 and 100,000 ETH has increased their holdings by an impressive 28.73%. This accumulation trend highlights a growing conviction among substantial investors, as those managing over 100,000 ETH have remained stable during this volatile period.
In summary, with technical indicators suggesting a potential price rebound, the backing of major institutional players like BlackRock, and increasing accumulation among significant holders, Ether appears to be strategically positioned for a recovery in the near future. Nonetheless, potential investors should remain vigilant and conduct their own research, as market conditions can shift rapidly and carry intrinsic risks.
