ETH Price Crash To $3K Soon: Can Ethereum ETF Inflow Minimize Impact?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market turbulence and volatility. The recent price action of Ethereum (ETH) is no exception, as it continues to grapple with selling pressure that has pushed prices below $3,500.

1) The price of ETH has persistently faced significant selling activity after being turned down at $4,000, leading analysts to foresee a possible fall below $3,000. From a technical perspective, Ethereum seems to be battling to sustain its bullish trend. Consequently, it’s likely that ETH could experience a dip under $3,000 before picking up momentum again. This week, there has been renewed investment into the spot Ethereum ETF, with Fidelity’s FETH leading the way on Thursday.

How Low Will the ETH Price Drop?

After experiencing a rejection at the $4,000 mark last week, Ethereum has already corrected more than 17%. Currently, I’m observing the Ethereum price hovering around the $3,350 range, and at the moment, there seems to be no immediate bullish catalyst. Given this scenario, analysts anticipate that the Ethereum price might dip further before we can expect a resumption of its upward trend.

Based on information presented on The Moon Show, it seems that the price trend for Ethereum (ETH) might be exiting a symmetric triangular formation. This technical analysis implies a possible price drop toward approximately $2,920.

Crypto analyst Justin Bennett has expressed caution about Ethereum price trajectory. In a recent post, Bennett highlighted the $3,541 level as a critical weekly resistance for Ethereum. He pointed out that the cryptocurrency struggled to break past this mark over the Christmas period.

Bennett noted that while there was an increase in value around Christmas time, this rise was modest and primarily due to retail activity. This suggests that the recent upward trend may not be strongly supported. The analyst anticipates Ethereum might drop more, but predicts a potential bottom could form by early 2025. On the contrary, some analysts foresee a significant Bitcoin price drop to around $80,000, and under such circumstances, Ethereum could also decline to approximately $2,500.

Will Ethereum ETF Inflow Arrest the Downfall?

Over the past few days, as the value of ETH continues to decrease, there’s been a renewed surge in investments into spot Ethereum Exchange-Traded Funds (ETFs). In just the last three trading periods, these Ether ETFs have attracted over $300 million.

On Thursdays, the overall investment into funds amounted to $117 million. Specifically, the Fidelity Ethereum ETF (FETH) garnered $83 million, while BlackRock’s ETHA gathered $28 million. This has pushed ETHA’s total investments since its inception beyond $3.5 billion. In addition, the combined investments into all Ethereum ETFs now surpass $2.6 billion according to Farside Investors data. These figures suggest that institutional interest in Ethereum remains robust even amidst recent market volatility.

Regarding Ethereum’s current bearish sentiment in the near future, financial experts remain optimistic over a prolonged period. On a yearly scale, the ETH price structure appears as an inverse head-and-shoulders pattern, with a breakout potentially igniting a surge towards $7,500 and beyond. Furthermore, analysts anticipate Ethereum’s value to increase significantly by 2025, projecting it to reach $15,000 and potentially surpass that mark.

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2024-12-27 13:26