The cryptocurrency market has showcased a significant recovery recently, with Ethereum (ETH) standing out as one of the leading assets.

Despite this upward trend, a well-known analyst expresses cautious sentiment regarding Ethereum’s future.

Concerns Ahead

Last week, ETH’s price fell below $3,100 on November 5. However, bulls have made efforts to recapture lost ground, with a significant price increase happening on November 9 when US President Donald Trump pledged to distribute at least $2,000 to every American outside the high-income bracket.

ETH peaked at $3,650 before retreating slightly to $3,610, marking nearly a 20% rise from the earlier local bottom.

ETH Price ETH Price, Source: CoinGecko

Nevertheless, analysts caution that Ethereum, as the second-largest cryptocurrency, remains in a precarious situation. Analyst Posty asserts that the overall price trend is still negatively inclined.

In his view, critical resistance levels near $4,000 could hinder a more robust recovery. He suggests, “Let’s put in a higher low and higher high if we’re truly ready to run this back.”

Simultaneously, Ted provides a more conservative forecast, noting that if ETH manages to close above $3,700, it could trigger a movement towards $4,000. Conversely, a failure to do so may lead to a decline towards the $3,400 support area.

Route to New Heights?

While some analysts are wary, others are optimistic about ETH’s short-term value skyrocketing to new historic levels. Analyst Cas Abbe infers that the recent dip towards $3,000 could be misleading, drawing parallels to a similar drop earlier this year that was followed by a dramatic rally.

Ali Martinez speculates on the possibility of ETH climbing to an all-time high of $10,000. However, he suggests that the price may dip to $2,000 before soaring to that record level.

The declining number of ETH tokens on exchanges further supports a bullish long-term outlook. Less than 16 million ETH are currently held on platforms, nearing the nine-year low recorded earlier this month. This trend indicates that investors are moving towards self-custody, reducing immediate selling pressure and showing that many are not taking profits en masse.

ETH Exchange Reserves