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 are still 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. The high volatility and selling pressure suggest that ETH’s decline may not be over yet. A possible ETH 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 levels might lead to a reversal, which might be stoked by a shift in the Federal Reserve’s monetary policy. The Fed is playing a role in macroeconomic uncertainty. Its current position on quantitative easing (QE) is one of the main threats to the price of ETH. The downward trend might be intensified 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, which would rekindle money printing and accelerate Ethereum’s recovery. Significantly, ETH/BTC ratios have historically increased after QE events, indicating that a bottoming-out situation might 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 attempt at a recovery. If ETH stays above $2,000 and the market improves, it may try to recover to $3,500-$4,000. Although there is still pressure on ETH, it is becoming more likely that there will be a sharp decline in price before a significant rebound.
