Ethereum requires enhanced blockchain activity, novel use cases, and partnerships with both public and private sectors to restore investor confidence and reclaim its previous all-time high, as analysts shared with Cointelegraph. Since Dec. 16, 2024, Ether (ETHUSD) has been experiencing a downtrend, dropping below the psychological threshold of $4, 000. In the weeks following, the world’s second-largest cryptocurrency has plunged over 20%, currently trading at $3, 260, according to Cointelegraph Markets Pro data. To turn its fortunes around and approach earlier highs, Ether needs a boost in fundamental blockchain activities, according to Aurelie Barthere, principal research analyst at Nansen. She noted, “Other layer-1 platforms are gaining ground on Ethereum in terms of applications, use cases, fees, and staking amounts. ” Barthere also highlighted that Ethereum could benefit from enhanced collaboration with both public and private entities, particularly in the U. S. , considering the recent regulatory advancements favorable to blockchain and crypto. Moreover, the Department of Government Efficiency (DOGE), led by Elon Musk, may further encourage Ethereum adoption. As reported, this non-governmental agency has been considering blockchain-based solutions for expense tracking and financial management, according to Barthere: “It’s been rumored that Musk’s DOGE, a cost-saving government initiative, has met with representatives from public blockchains to discuss potential on-chain expense tracking and management. ” Additionally, Ethereum's involvement in prospective ventures of the Trump family could promote further adoption, as suggested by Joseph Lubin, co-founder of Ethereum and founder of Consensys, who indicated that the Trump family might be contemplating creating an Ethereum-based cryptocurrency business. In other developments, Ether options have shown bullish momentum, although ETH is encountering resistance at $3, 400. Ether options trading volume has surged to its highest in over a month, indicating a recovery in the crypto market following recent sell-offs, as noted in a Jan.

31 report by Bybit and Block Scholes. Despite this recovery signal, the increasing options trading volume may not directly influence Ether's price, an analyst from Block Scholes explained to Cointelegraph. However, analysts have pointed out that the rise in bullish Ether options contracts indicates that traders are betting on a possible price rebound: “The larger notional value of call option open interest seen throughout January is now once again supported by a bullish skew towards out-of-the-money (OTM) calls at varying volatility smiles across expirations. ” The options skew refers to the difference in implied volatility between out-of-the-money put options and out-of-the-money call options in Ether's options markets. Crypto trader Cas Abbé stated that Ether must reclaim $3, 400 before attempting to approach its all-time high, mentioning in a Feb. 1 post: “ETH is forming a bullish divergence on the daily timeframe. [. . . ] For the uptrend to continue, ETH needs to close above $3, 400 on a daily basis, and the rally towards $4, 000 will occur very soon. ” Nonetheless, Ether faces substantial resistance at $3, 400. A potential breakout above this level could trigger more than $1. 09 billion in cumulative leveraged short liquidations, as indicated by CoinGlass data. Several industry observers anticipate that Ether will make a comeback in February, bolstered by ongoing institutional support from Trump’s World Liberty Financial protocol.