Ethereum has been recovering in the last few days, after falling to its lowest level for months. Based on momentum indicators, the coin looks poised to bounce higher. It still faces significant downside risk and upward resistance. These are some facts:

• ETH reclaimed $2000 after facing a major sell-off this week

• RSI divergence, and the moving average convergence divergence are signs of bullish momentum

• But ETH is still under pressure below critical resistance zones

Data Source: Tradingview

Ethereum (ETH) – How it will hit $2500

At the moment, investors don’t seem to be willing to purchase any coins. This is a seller’s marketplace and there are concerns that the crash this week may only be the beginning. ETH is one of the coins that we believe will rebound in the short-term, despite this.

Momentum indicators, in particular, suggest that Ethereum will rise. Positive bullish signs are evident in the RSI divergence as well as the moving average convergence divergence. If indeed ETH is able to keep the price above $2000, then a surge towards $2500 will be possible. It won’t be easy.

For starters, ETH still has to overcome several crucial resistance zones, including its 50-day EMA of around $2,349. The rally that we witnessed in the wider market yesterday may be temporary. These risks could make it more difficult for ETH bulls in the short-term to take control.

Will Ethereum return to $5,000 this year?

Ethereum was predicted to do pretty well in 2022. Some analysts were even targeting $10,000 before the year is out.

However, based on the events in the market these past months, it seems unlikely that the coin will reach such heights. But $5000 could return. However, ETH will experience high volatility before it reaches that level.