Ethereums 10% Rally Might Be Short Lived: Here\'s Why

Could the next cryptocurrency market bull run be started by Ethereum\'s 10% Rally? Ethereum\'s recent 10% increase has made headlines. Ethereum has reclaimed the $2,000 price mark, rallying alongside the broader crypto market following the Federal Reserve’s decision to hold interest rates steady. But is this rally sustainable?

Prometheum\'s Ethereum (CRYPTO: ETH) investors might want to enjoy the current rally, but it may be short-lived, according to a new report by 10x Research. Several factors suggest caution. Weak on-chain demand and bearish bias suggest Ethereum\'s rally may be short-lived.

One key indicator is negative DAA divergence, which indicates speculative buying rather than genuine, long-term investment. This means the price increase is fueled more by short-term traders than by individuals and institutions building positions for the long haul.

The anticipation surrounding Ethereum\'s upcoming Dencun upgrade, along with significant developments like Ark Invest and 21shares\' amended spot ETH-ETF filings, certainly play a role in the positive price action. However, these catalysts might be already priced in.

Adding to the uncertainty, Ethereum (ETH) May Remain Consolidated Throughout 2025 if it Fails to Hit $3000. Here’s Why! Achieving that price point is crucial for sustained bullish momentum.

However, some analysts remain optimistic. "I would contend that Ethereum might not go lower than $1,100, because that is where the lower logarithmic regression trendline is, and the final low before a really big..." while the complete thought is cut off, it suggests a potential floor for ETH.

Ultimately, while the 10% rally provides some relief, investors should proceed with caution. Monitoring on-chain data, ETF developments, and the success of the Dencun upgrade will be crucial in determining whether this rally is a short-lived burst or the start of a more sustained upward trend.