Ethereum Price Forecast: ETH Path to $3,000 Still Intact

Summary:

In this article, I explain why the path to $3,000 for Ethereum price is still intact. It could still drop to $1,880 but the uptrend remains

The Ethereum price path to $3,000 has hit a major barrier. The ETH price has dropped in the past five consecutive days as some investors take profit and as the hype over Coinbase listing starts to fade. Ethereum is trading at $2,135, which is 18% below the all-time high of $2,555.

What happened: Ethereum has had a remarkable rally in the past few months. The price dropped to below $100 after the coronavirus became a pandemic. Since then, it has soared to more than $2,500, a 2,500% gain. This makes it a better performer than most assets like gold and the S&P 500.

As I predicted a few months ago, the Ethereum price soared to $2,500 last week as the enthusiasm of Coinbase spread. Since then, however, momentum has fallen and the currency has declined by about 18%. This is a typical occurrence after a major event. Also, ETH retreated after it rose to $2,500, which was a key level of resistance.

Another key Ethereum news is that Canada has allowed three ETFs that will hold Ethereum. They are the first funds of this type. In a note, an analyst told Barrons.

“While bitcoin tends to get a lot of attention as it was the first major cryptocurrency, what ether and the Ethereum ecosystem represent is one of the most exciting new technology visions today in society.”

Ethereum price prediction

The Ethereum price has dropped substantially in the past few days. However, a closer look at the daily chart shows that this performance was easy to see. Furthermore, the price had just tested the upper side of the ascending channel that is shown in black. We also see that the price is attempting to retest the lower ascending trendline that is shown in blue. It is also along the 25-day and 15-day moving averages.

Therefore, in my view, ETH price may continue to retreat to $1,880, which is the lower side of this channel, and then resume the upward trend. Like I wrote last week, my longer-term prediction for ETH is $3,000.