Ethereum price has struggled to regain the critical $3,000 mark over the past 48 hours, raising concerns about possible declines in the cryptocurrency’s value if this vital support level is not regained by the end of the week.
Analyst predicts further downside
Market analyst Ted Pillows pointed out on social media platform
This scenario would indicate an additional retracement of around 5% from the current trading price, which is hovering just above $2,940. This ongoing struggle contributes to the 16% decline recorded in the monthly time frame, highlighting the precarious situation for broader cryptocurrency prices.
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Another analyst, Columbus, tried to understand Ethereum’s lackluster performance compared to Bitcoin (BTC). He noted that Ethereum is still trading below its Volume Weighted Average Price (VWAP), and is struggling to gain traction above this critical benchmark.
The observed rebound between $2,800 and $2,850 appears responsive rather than impulsive, in the analyst’s words. This suggests that while there is buying interest, conviction in the rally remains weak.
Columbus further noted that there is significant liquidity overhead, especially within the $3,050 to $3,250 zone. This liquidity has successfully capped any attempts to push prices higher.
Unless Ethereum can recapture this territory and achieve consistent adoption above it, upward moves will likely have more to do with short-term rotations in supply than true trend continuation.
On the other hand, the inability to hold the $2,850 mark could expose Ethereum to deeper losses, potentially leading to a decline towards lower prices. liquidity levels between $2,400 and $2,700, where most of the liquidity is concentrated.
Will Ethereum Fall to $1,300 by 2026?
Looking further into the future, market expert CryptoBullet painted a bleaker picture of Ethereum’s potential trajectory for 2026. He has introduced a new fractal model for Ethereum that suggests bearish outcomes for investors anticipating a bull run next year.
In a social media post, CryptoBullet presented a daily chart of Ethereum, outlining key price targets and indicating that while a price recovery could occur in January and February, a significant downturn could occur in the following months.
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According to this analysis, Ethereum’s brief recovery could fail resistance levels between $3,600 and $3,800, possibly culminating in a dramatic drop to a target price of $1,385.
If this fractal model mimics Ethereum’s performance in 2022, it could mean a staggering 63% drop in value for the leading altcoin.
Featured image of DALL-E, chart from TradingView.com