Ethereum (ETH), the second-biggest name in crypto by market cap, has had a bit of a bumpy ride to start the year. It’s taken a tumble of over 30% since January, currently sitting at $2,261 as we’re writing this.

However, it looks like Ethereum is trying to shake things off! It’s bounced back almost 9% since a bit of a dip on March 4th, clawing back some of the ground it had lost.

This recent downturn actually wiped out the gains from a short burst of excitement we saw after Trump mentioned a “strategic crypto reserve” on March 2nd. Initially, he name-dropped XRP, Solana (SOL), and Cardano (ADA) for this reserve, but later expanded it to include heavyweights like Bitcoin (BTC) and Ethereum, calling them the very “heart of the reserve.”

Looking ahead, it’s still a bit of a guessing game for Ethereum in the short term. Investors are in two minds right now: is this recent bump up the start of a real comeback, or just a temporary breather before the price potentially dips further?

Finbold AI predicts Ethereum price target for March 31

To get a clearer picture, Finbold’s AI prediction tool has crunched the numbers and given us an updated forecast for Ethereum as we head towards March 31, 2025. After looking at technical signals and market trends, the AI model is predicting an average ETH price of $2,809.5. If this pans out, it would be a healthy 24.02% jump from its current price of $2,261.

Interestingly, even AI models aren’t fully in agreement about Ethereum’s future path right now. The most optimistic prediction comes from Claude 3.5 Sonnet, which sees a potentially bigger surge of 30.23%. This could push ETH to test levels above $2,945 in the coming weeks.

On the other hand, GPT-03 Mini is taking a more cautious stance. It’s forecasting a more modest 15.08% increase, which would put ETH around $2,606 by the end of March.

Ethereum’s broader landscape

Looking beyond just price predictions, what could really influence where Ethereum goes next are things like regulations and upcoming changes to its network.

One key event on the horizon is the Pectra upgrade, expected in April 2025. It just went live on the Sepolia test network, which is a significant step. This upgrade is designed to make Ethereum faster, cheaper, and more scalable, all of which could fuel even greater interest in ETH.

We’re also seeing growing interest in Ethereum from bigger players. World Liberty Financial (WLFI), a DeFi platform with ties to Donald Trump, has been beefing up its ETH holdings. They now hold a substantial $16.14 million worth of Ethereum, along with $14.65 million in Wrapped Bitcoin, according to data from Arkham Intelligence.

Looking at some on-chain metrics also paints a potentially positive picture. The MVRV ratio, which compares market value to realized value, has dipped below 1. Historically, this kind of level has suggested that the price might be undervalued, potentially signaling a good time to buy, especially around the average price that current holders, including big “whale” investors, paid.

Adding to this, there’s been a noticeable increase in the number of addresses accumulating ETH, which suggests that larger institutions are indeed buying in at these current price levels.

And from a technical analysis perspective, Ethereum’s price movements look similar to what happened back in 2016. Then, a period of price consolidation was followed by a major price surge. If history is any guide, Ethereum might be setting itself up for another significant rally, potentially making current prices an attractive entry point for those looking at the long term.

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