No, Ethereum Price Is Not Overheated Yet, Key Levels To Watch

Popular market analyst Crypto Dan on X recently shared his opinion on bearish sentiments surrounding the Ethereum (ETH) price.

Crypto Dan claimed ETH is not overheated, contrary to fears of some market participants and stakeholders.

According to Crypto Dan, higher ETH prices could signal the arrival of a potential altcoin season.

Other analysts have also forecasted bullish outcomes for ETH. Some predicted that the ETH price could reach as high as $8,000 in the ongoing cycle.

Why Ethereum May See More Tops

As disclosed in a report from CryptoQuant, Crypto Dan suggested that the ETH bull run still has some room for another leg up.

The analysts posted a chart of the Ethereum funding rates across all exchanges. Analyzing the chart, Crypto Dan said the current ETH market is nowhere near the overheated levels recorded in March 2024 and November 2024.

The analyst, however, acknowledged that ETH is at risk of experiencing a short-term price correction due to its recent surge in value.

Nonetheless, Crypto Dan believes an eventual correction would likely be shallow and short.

The analyst added that Ethereum has experienced a very sluggish movement, despite its price rally. He emphasized that the leading altcoin reached an undervalued zone while hitting bottom.

Considering these movements, Crypto Dan thinks the ETH price is poised for another bullish rally in the second half of 2025.

The analyst concluded that an imminent Ethereum rally signals the potential arrival of an altcoin season.

At the time of writing, the ETH price was oscillating around $3,591.80, with a 2.63% decline over the last 24 hours.

However, ETH was still up more than 5.72% over the past week, according to data from CoinMarketCap.

Conversely, XRP, Solana (SOL), and Dogecoin (DOGE) also recorded gains of 4.86%, 8.36%, and 16.23% on similar timeframes.

Is an Altcoin Season Near?

Altcoins lagged behind Bitcoin (BTC) much of the beginning of 2025. However, altcoins saw a turnaround in June after BTC hit new record highs.

Currently, several data points have suggested the market is entering an altcoin season. One of the clearest indicators of the brewing altcoin season is the Altseason Index.

This tool that measures whether altcoins are outperforming Bitcoin recently climbed to 51.

This marks the first time in months the Altseason Index has moved above 50. Historically, a move above the midpoint occurred during the early stages of the altcoin market growth.

It is important to note that a confirmed altcoin season is recognized when the index exceeds 75. However, the movement past 50 is a transitional signal.

Another key indicator that signaled an imminent altcoin season is the TOTAL2 chart. It measures the total defined market capitalization of cryptocurrencies other than Bitcoin.

The TOTAL2 chart recently exited a bullish ascending channel. This breakout mirrored previous patterns observed in notable altcoin rallies.

ETH Price Predictions

As the signs of an altcoin season are loading like never before, the market is watching to see the next big move for ETH. Some await to see if the leading altcoin can finally reach $5,000 in 2025.

However, crypto trader and analyst Titan of Crypto on X has recently raised the target to $8,000. The analyst noted that ETH has a clear price structure and suggested a breakout is on the horizon.

ETH at $8,000 is an optimistic projection if the price reverses upward. However, it seems distant given the current price.

Moreover, key resistance lies between $3,800 and $4,000. A move above these levels could potentially see ETH price reaching new highs.

In contrast, the ETH price may continue to decline if it fails to climb above the resistance levels.