Analyst Forecasts Ethereum Could Rebound To $4,000 Despite Recent 5% Drop

Captain Fivick, a well-known crypto analyst, recently offered An insightful analysis of Ethereum (ETH) performance. As of June 24, 2024, Ethereum is trading at $3,363, indicating a drop of 4% in the past day and 5% in the past week. Nevertheless, the 24-hour trading volume has surged by 80.21%, indicating increased market activity.

Fibich’s analysis focuses on a descending wedge pattern observed on Ethereum’s 8-hourly timeframe. This bullish pattern signals a potential reversal in the asset’s price direction. A descending wedge is characterized by downward sloping, converging trend lines, signifying diminishing selling pressure and signaling a possible bullish reversal.

The analyst highlights that a successful breakout from this formation could send Ethereum price above the $4,000 level again. His chart shows that after a period of consolidation within the wedge, a breakout above the upper trend line could trigger a significant upside. This breakout would signal a change in market sentiment from pessimistic to optimistic, which could prompt increased buying.

The recent increase in trading volume supporting this potential breakout suggests that increased volumes often precede significant price movements. Traders and investors are advised to monitor this pattern closely as a confirmed breakout could provide a profitable opportunity. The $4,000 objective is in line with previous resistance levels and will be a key milestone for Ethereum price recovery.

Analysts have mixed views on Ethereum’s impact on ETFs

But not all analysts are optimistic. Andrew Kang, founder and partner at Mechanism Capital, said: Predict Kang noted that Ethereum could fall to $2,400 after the launch of a spot Ether exchange-traded fund (ETF), emphasizing that unlike Bitcoin, Ethereum has not attracted much institutional interest and there is little incentive to convert spot Ether into an ETF format. He believes the network’s cash flows are not that impressive.

According to Kang’s analysis, the expected price decline would be close to 40% from Ethereum’s current price. In a June 23 post, he argued that the ETH ETF has minimal upside potential, with an expected price of $2,400 to $3,000 after launch. The prediction is based on relatively low institutional interest and expected modest inflows from spot Ethereum ETFs.

Meanwhile, industry analyst Patrick Scott and asset manager Van Eck are more optimistic. Scott sees a similar trajectory to the Spot Bitcoin ETF but doesn’t expect Ethereum to double in price. Meanwhile, Van Eck believes the Spot Ethereum ETF could push Ethereum to $22,000 by 2030, suggesting a longer-term bullish outlook.

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