Crypto analyst Rekt Capital suggests Ether may consolidate between $3,000 and $4,000, but a drop to $3,000 remains possible.
According to a crypto analyst, Ethereum’s price may remain range-bound between two critical psychological levels in the near term due to its ongoing struggle to maintain a price above $4,000.
In a market report published on December 20, pseudonymous crypto trader Rekt Capital stated that Ethereum is still grappling with the psychological resistance of $4000.
According to CoinMarketCap data, Ether has repeatedly exceeded $4,000 over the past 30 days, with a high of $4,077 on December 6. However, it has been unable to maintain this price.
ETH May Consolidate Between Two Psychological Levels
Rekt stated that Ether has reached a level of “psychological support” of $3,000, which it last reached on November 9.
Prior to that, It had been trading below $3,000 since August 3.
Rekt stated that Ether may consolidate between $3,000 and $4,000 in the immediate future.
Nevertheless, he proposed that the current price of $3,466 could experience a short-term decline of over 10%, potentially approaching the $3,000 mark.
Rekt stated, “It would be worthwhile to observe whether ETH could develop a bottom in and around that region, as this could potentially lead to the development of a right shoulder in an inverse head-and-shoulders formation.”
The head-and-shoulders pattern is a reversal pattern that can indicate a shift in the direction of a trend.
The potential catalysts for strong price momentum have been identified by analysts as a variety of factors, including the scarcity of Ethereum supply on crypto exchanges and the increasing inflows into spot Ether exchange-traded funds (ETFs).
Cointelegraph reported on Dec. 17 that ETH balances on exchanges reached an 8.5-year low of 9.2 million ETH, a decrease of nearly 10% over the past year, according to data from on-chain market intelligence firm CryptoQuant.
In the interim, certain analysts are optimistic that spot Ether ETF inflows are gathering momentum and could surpass Bitcoin ETFs in 2025.
Analysts Anticipate That Upward Trajectory Of Ether ETF Will Persist
Since their introduction in the United States on July 23, Spot Ether ETFs have generated a total of approximately $2.43 billion, according to Farside data.
Analysts anticipate that this upward trajectory will persist through 2025, particularly if regulators permit the funds to generate yields through pledging.
VanEck, an asset manager, anticipates that the market price of Ether will surpass $6,000 by the fourth quarter of 2025.
After the launch of spot Bitcoin ETFs in January, there was hope among crypto market participants that Ether would perform similarly to Bitcoin when spot Ether ETFs were first introduced in July.
Nevertheless, the initial weak inflows made it less probable that Ether would surpass its all-time high and reach $5,000 by the end of the year.
