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