Despite a volatile past two weeks, driven by Donald Trump’s proposed trade tariffs and higher-than-expected January 2025 inflation data in the US, Ethereum (ETH) has successfully defended the $2,380–$2,460 demand zone. Now, analysts are eyeing a potential move toward $3,000 for the digital asset.

Ethereum Defends Key Demand Zone Amidst Volatility

According to an X post by crypto analyst Ali Martinez, ETH has managed to hold above the critical $2,380 – $2,460 demand zone. With no major supply barriers ahead, the cryptocurrency could be on track to reach the $3,000 price target.

For the uninitiated, a demand zone in trading is a price area where buying pressure is significantly strong, often leading to price reversals or upward movements. It is identified by historical price action, where demand previously exceeded supply, causing prices to rise.

Crypto trader Daan Crypto Trades shares a similar outlook on Ethereum’s recent price momentum. According to the trader, while ETH has successfully remained above the $2,500 level, the key hurdle to overcome is the $2,800 price level. They noted:

The key level for continuation, and for me to say that this correction is over, would be a retake of that $2.8K level. Flips the market structure locally and has been at an important high timeframe level during this cycle.

From a technical perspective, fellow crypto trader Merlijn The Trader highlighted the formation of a ‘textbook double bottom’ on the 5-day Ethereum chart. They further pointed out that ETH’s multi-year trendline remains intact, suggesting that the price structure is primed for an upward breakout.

Similarly, seasoned crypto influencer Crypto Rover has identified a potential triple-bottom formation on the weekly Ethereum chart. If this pattern plays out, the $4,000 resistance level will be a crucial barrier for ETH to break before it can attempt a new all-time high (ATH).

Is ETH About To Surprise The Market?

Ethereum’s below-average price performance over the past year has drawn significant attention in the crypto market. Compared to peers like Solana (SOL), XRP, and SUI, ETH has failed to deliver substantial returns to its holders since reaching its current ATH of $4,878 in November 2021.

This lackluster performance has fuelled an unprecedented level of bearish sentiment around ETH. A recent report revealed that ETH short positions have surged by 500% since November, highlighting dwindling investor confidence in the asset.

However, this excessive bearish sentiment could set the stage for a surprise move. If ETH manages to trigger a short squeeze, it could force the liquidation of numerous short positions, fuelling a sharp upside rally. At press time, ETH trades at $2,740, up 4.1% in the past 24 hours.

Facebook’s parent company, Meta Platforms, is planning its next huge investment: AI-powered humanoid robots as it pushes into augmented reality.

According to a Bloomberg report, the social networking firm is making significant investments in this category as it seeks to become a leader in futuristic robots that can act like humans and help with routine physical tasks.

A new unit will be established within Meta’s hardware division, Reality Labs, which will be responsible for handling the task, according to people with knowledge of the matter. Reports indicate that Meta is not planning on building Meta-branded robots, which could directly compete with Tesla Inc.’s Optimus, although it may explore this option at later stages.

Meta will initially focus on humanoid robots for household chores

Indications are that Meta is now planning to start on its humanoid robot hardware but initially focusing on household chores. According to people privy to the developments but could not be named as the initiative is yet to be announced, the company has bigger plans, which entail making the underlying AI, sensors, and software for robots that will be manufactured and sold by a range of companies.

The social networking giant has reportedly started discussions about its plans with some robotics companies, including Unitree Robotics and Figure AI Inc.

This initiative is also reflective of the exploratory projects of other tech giants, including Apple Inc. and Alphabet Inc.’s Google Deepmind division.

According to Bloomberg, Meta has since confirmed this development with the formation of a new team that will be led by Marc Whitten. Whitten resigned as CEO of General Motors Co.’s Cruise self-driving car division earlier this month. He was previously an executive at Unity Software and Amazon.com Inc.

“The core technologies we’ve already invested in and built across Reality Labs and AI are complementary to developing the advancements needed for robotics,” Andrew Bosworth, Meta’s chief technology officer, wrote in a memo reviewed by Bloomberg News.

According to the Bloomberg report, Bosworth mentioned the company’s advancements in hand tracking, computing at low bandwidth, and always-on sensors.

Expansion into humanoids is expected to add value to Meta’s AI

Executives at Meta are of the view that while AI-powered humanoid robotics companies have made headway in hardware, Meta’s advances in AI and data collected from augmented and virtual reality devices may speed up progress in the industry.

“We believe that expanding our portfolio to invest in this field will only accrue value to Meta AI and our mixed and augmented reality programs.”

– Bosworth

Current humanoids are still not useful enough to perform small tasks like folding clothes, carrying a glass of water, placing dishes in a rack for cleaning, or performing other household chores that could excite consumers in this category.

According to Bloomberg, Whitten – who will report to Bosworth –  will have a headcount to hire around 100 engineers this year, as per comments by one of the sources.

Meta wants to make a mark in the industry in the same way that Google’s Android operating system and Qualcomm Inc.’s chips did for the phone industry by creating a foundation for the rest of the market.

One of the people involved in the project revealed that Meta is already developing software, sensors, and computing packages for its devices, which is the same technology needed to support humanoids.

The social networking company has invested billions of dollars over the years in Reality Labs’ hardware division. This division is responsible for selling products like the Quest VR headset and the increasingly popular Ray-Ban smart glasses.

The company is also planning to spend $65 billion this year on related products, among them AI infrastructure and the new robot work.

Pushing into humanoids still new for Meta

According to Bloomberg, AI-powered humanoids are an evolution of what companies have been doing with autonomous cars. They use similar underlying technologies but large amounts of data and AI processing.

Meta’s executives believe that humanoids are more challenging on the safety side because every home has a different layout compared to city streets, which are more standardized. Meta’s Fundamental AI Research Group, or FAIR, has been exploring robots’ work for months as the company pushes its way into new territory to compete with Tesla and Nvidia.

An individual close to the developments, as cited by Bloomberg, indicated that Meta believes humanoids are still years from being widely available. This could also take the company years to underpin third-party products. However, it will be a major focus for the company and the tech industry.

For Tesla, Elon Musk has indicated that the Optimus robot will be sold at $30,000, and the company is beginning with limited production this year. Other companies, like Boston Dynamics, have made progress indicating their intentions to sell to businesses, while Meta is targeting homes.

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