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Ethereum Price Prediction – Ethereum Faces Critical Support at $3024.45 Amidst Downtrend

Ethereum is in the spotlight in the markets today, even though the price remains in the red. As of 11:23 AM GMT +3, Ethereum was trading at $3222.91, down by 2.47% in the day. However, the volatility around Ethereum is on the rise as investors try to figure out the next direction for Ether. 

The volatility around Ethereum has a lot to do with the ETF. On one hand, there is growing sentiment in the market that the Ethereum ETF may not approved, and this has led to a considerable outflow from Ethereum, primarily by retail money. This perception that an Ethereum ETF is not coming is evident in most social media polls gauging investor expectations.

It is also apparent in the continued negative sentiment around the ETF from the SEC Chairman Gary Gensler criticizing the recent Ethereum upgrade dubbed Dencun and how it does not aid towards approving an Ethereum ETF.  

BlackRock Showing Confidence In Ethereum

However, amidst all this, there is positive news about the possibility of this ETF coming from BlackRock. This finance giant has been instrumental to the growing institutional money that is flowing into Bitcoin ETFs. BlackRock has deposited $100 million into the Ethereum ecosystem.

This is a signal from the world’s largest investment fund that they expect good things for Ethereum, mainly because they have an Ethereum ETF of their own filed with the SEC. Considering that BlackRock has a near-perfect record of having its ETFs approved, the move to deposit $100 million into Ethereum could be a signal that, despite the uncertainty, they expect an Ethereum ETF to be approved by May. 

Ethereum Core Fundamentals Getting Better 

Besides the ETF speculation, the underlying fundamentals for Ethereum are stronger than ever, and this could also be a driving force for big players like BlackRock getting into the Ethereum ecosystem. For instance, since the Dencun upgrade, fees across the Ethereum ecosystem have dropped drastically. This makes Ethereum more attractive to investors because, besides the higher speeds, Ethereum is known for a lot more than that, including the fact that it is highly decentralized and secure. This means the underlying demand for Ethereum will continue to grow. 

Overall, Ethereum’s current volatility is due to uncertainty around the ETF. A segment of the market, including reputable analysts, believes the ETF will not be approved. On the other hand, big players like BlackRock are sending positive signals that they think about Ethereum and expect it to do well in the future. 

Ethereum At A Make Or Break Point In The Short Term

On the weekly chart, Ethereum has made two consecutive bearish candles, an indicator that bears could be taking control. However, the Bulls are wrestling back control with a slight rebound from $3061.48, now a critical support level.

If bulls sustain the rebound, the key level to watch for Ethereum would be the $4089.91 monthly high, now a critical resistance level. If bulls can push Ethereum through $4089, it would indicate that investors have faith in Ethereum whether an ETF is approved or not. Such a scenario could easily see Ethereum retest its all-time high of $4800 in the short term.

On the other hand, if bulls lose momentum, two scenarios could play out. The first is a consolidation between the $3061.48 support and the $4089 resistance until a clear direction is found.

However, if bears take control and push Ethereum through the $3061.48 support, it would mean that the bullish channel that Ethereum has built since February is broken. In such a scenario, Ethereum could see a significant correction that could easily send it to prices below $2000. 

Ethereum Price Prediction – So, Which Way For Ethereum?

While any of the three scenarios discussed above could play out in the day, an Ethereum price rally toward $4000 is likely.

One of the critical factors likely to trigger such a price run is that big-money players are sending the right signals. The move by BlackRock to deposit $100 million into the Ethereum ecosystem indicates that investors expect Ethereum to do well whether an ETF is approved. 

At the same time, the improved scalability of Ethereum after Dencun now complements Ethereum’s strengths, such as decentralization and security, meaning adoption is set to go up long term.