Ethereum’s Price Outlook

Ethereum might plummet below $1,000 before a potential price rise. The chart suggests that Ethereum’s long-term uptrend is unlikely to come until it hits an ascending trading range. Macro factors remain unclear for the asset, and the performance of ETH raises more questions than answers.

Amid a wider market decline, ETH is currently trading at about $3,145, battling to stay stable. As the asset broke important support levels and began to decline, the recent price action has been overwhelmingly bearish. High volatility and selling pressure suggest that ETH’s decline may not be over yet. A possible bounce point below $1,000 is indicated by the provided chart; this would be consistent with earlier capitulation events that occurred in April and August.

If the past repeats itself, a decline to below $1,000 might lead to a reversal, potentially spurred by a shift in the Federal Reserve’s monetary policy. The Fed plays a significant role in macroeconomic uncertainty, and its current stance on quantitative easing (QE) poses a major threat to the price of ETH. The downward trend may intensify and ETH might return to its lower support zone if the Fed announces no plans for liquidity injections.

By March 2025, a sharp decline in ETH’s value might necessitate a policy change, rekindling money printing and accelerating Ethereum’s recovery. Notably, ETH/BTC ratios have historically increased after QE events, indicating that a bottoming-out situation could pave the way for a major rally.

A drop below $1,500 could swiftly push ETH to $1,200 and then below the $1,000 levels before any recovery attempt. If ETH remains above $2,000 and the market improves, it may attempt to recover to $3,500-$4,000. Although pressure persists on ETH, a sharp decline in price seems increasingly likely before a significant rebound occurs.