Ethereum price has stalled below $2,000 this week, and some signals indicate a potential drop to $1,000 before it reaches $4,000.
Ethereum (ETH) was trading at $1,810 on Tuesday, a level it has maintained for several days. This price is about 31% above the lowest point this year.
A Polymarket poll shows that most users anticipate the coin will drop to $1,000 this year, a move that would represent a 45% decline from current levels. The odds of the price dropping to $1,000 stand at 39%, while the chances of it rising to $4,000 are at 20%.
Polymarket users appear bearish on Ethereum due to its weak fundamentals. Demand for spot Ethereum ETFs has waned, with all such funds recording cumulative inflows of just $2.4 billion compared to Bitcoin’s (BTC) $38 billion.
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Furthermore, the Ethereum Foundation has been selling coins, a move investors view as a red flag.
Ethereum has also lost market share in industries like decentralized finance and gaming to other layer-1 and layer-2 networks like Base, Arbitrum, and Solana. These concerns have even led Charles Hoskinson, Cardano’s founder, to predict that Ethereum will not survive for another 10 to 15 years.
Moreover, Ethereum is not generating as much revenue as it did in the past. It has produced $245 million so far this year, significantly lower than the revenue of other networks, including Lido, Uniswap, Solana, Jito, Circle, and Tron.
The weekly chart shows that Ethereum price may drop to $1,000
ETH price chart | Source: crypto.news
The recent Ethereum price rebound may be part of a dead cat bounce or a bull trap, as the weekly chart suggests further downside. It formed a triple-top chart pattern at $4,010, its highest level in March, May, and November last year. The neckline of this pattern is at $2,130, its lowest swing since August 5.
The distance between the triple-top point at $4,010 and the neckline was about 47.26%. Measuring that distance from the neckline at $2,130 suggests the next target could be around $1,093. A drop below that level would point to further downside toward the psychological level at $1,000.
The bearish outlook toward $1,000 would become invalid if the coin jumps above the neckline at $2,130.
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