The Ethereum price has struggled to reclaim the critical $3,000 mark for the past 48 hours, raising concerns about potential declines in the cryptocurrency’s value if this essential 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 X (formerly Twitter) that without a quick recovery above $3,000, Ethereum could face further downside pressures, possibly dropping toward the $2,800 range in the near term.
This scenario would indicate an additional retracement of approximately 5% from its current trading price, which hovers just above $2,940. This ongoing struggle adds to the 16% decline recorded in the monthly time frame, highlighting the precarious situation for broader cryptocurrency prices.
Another analyst, Columbus, sought to understand Ethereum’s lackluster performance relative to Bitcoin (BTC). He noted that Ethereum continues to trade below its Volume Weighted Average Price (VWAP), struggling to gain traction above this critical metric.
The bounce observed from the $2,800 to $2,850 range appears more responsive than impulsive, in the analyst’s words, suggesting that while there are buying interests, conviction in the rally remains weak.
Columbus further remarked that there is considerable liquidity layered overhead, particularly within the $3,050 to $3,250 zone. This liquidity has successfully capped any attempts to push prices higher.
Unless Ethereum can reclaim this area and achieve consistent acceptance above it, upward movements are likely to be more about short-term rotations into supply rather than genuine trend continuation.
On the downside, a failure to hold the $2,850 mark could expose Ethereum to deeper losses, potentially leading to a downturn toward lower liquidity levels between $2,400 and $2,700, where the bulk of liquidity is concentrated.
Will Ethereum Drop To $1,300 In 2026?
Looking further into the future, market expert CryptoBullet painted a more somber 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 might occur in January and February, subsequent months could see a significant downturn.
According to this analysis, Ethereum’s brief recovery could falter against existing resistance levels between $3,600 and $3,800, potentially culminating in a dramatic decline to a target price of $1,385.
If this fractal model mimics Ethereum’s performance in 2022, it could signify a staggering 63% drop in value for the leading altcoin.
Featured image from DALL-E, chart from TradingView.com
