Could Ethereum (ETH) head back down to $3,000?

Table of Contents

• What’s in store for the $ETH price?
• Bullish short term price action
• Is a move back to $3,000 possible?
• Lower, but then up to $5,000

With the Spot Ethereum ETFs due to begin trading at some point in the next two or three months, could the $ETH price begin to rise in anticipation of this event, or could we see a return to $3,000 first?

Gary Gensler, chairman of the SEC, has said that the Spot Ethereum ETFs that his agency has approved, will be able to begin trading this Summer . We are already halfway through June, so this should be within the next couple of months.

What’s in store for the $ETH price?

$ETH is up 1.3% so far on Friday. This is better than most cryptocurrencies, with $BTC still fairly stagnant and only just in the green, the short term price action for $ETH has got off to a faster start.

Bullish short term price action

Source: TradingView

On the 4-hour chart, it can be seen that the $ETH price has found some support at $3,430. A W pattern is forming, and a breakout of this could coincide with a breakout of the downward-sloping trend line. A measured move takes the price back to where the trend started at $3,800.

Is a move back to $3,000 possible?

Source: TradingView

The daily time frame shows that if there is a breakdown, that perhaps the price still needs to come back to the 0.618 fibonacci level, and even as far back as the 0.786 at around $3,000.

Lower, but then up to $5,000

Source: TradingView

The weekly chart puts this into a clearer perspective. The fibonacci levels line up perfectly with support levels, and $3,300 and $3,000 are very distinct. 

Source: TradingView

Looking left at previous price action it can be seen that the 0.786 fibonacci lines up the best with support at $3,000. If this correction transpired, it would form a higher low, and potentially the last leg of a huge W pattern, the measured move of which could take the $ETH price to a new high of $5,000. 

At the same time, drawing fibonacci levels for the entire $ETH move so far in this bull market, it can be seen that the correction from mid-March into the end of April based beautifully on the 0.382 fibonacci. It wouldn’t be likely for the price to go below this now.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.