Ethereum Expert Warns Investors: If the Withdrawal Continues, It Will Fall Here! - Coin Bulletin

Crypto analyst Rekt Capital noted that Ethereum is struggling to overcome the $4,000 psychological resistance.

The analyst said in the market report dated December 20th, 'Ethereum is still struggling to break the psychological resistance of $4,000.' According to CoinMarketCap data, Ether has surpassed $4,000 several times in the last 30 days and reached $4,077 on December 6th, but failed to hold at this level.

$3,000 Psychological Support Level

Rekt Capital says that the $3,000 level has now become a "psychological support" for Ethereum. Ether last touched this level on November 9th. Previously, the price of ETH had been below $3,000 since early August. The analyst expects Ethereum to consolidate between $3,000 and $4,000 in the near term. However, he also emphasizes the possibility of a drop of over 10% from the current price of $3,466 to the $3,000 region.

Rekt Capital said, 'If ETH can form a bottom around $3,000, it could lead to the development of the right shoulder for a reverse head and shoulders formation.' This formation is typically seen as a signal for a change in trend direction.

Ethereum Supply and ETF Investments Can Trigger a Strong Rally

Some analysts believe that the low supply levels on exchanges and the increasing inflow of spot Ether exchange-traded funds (ETFs) could have a positive impact on the price of Ethereum. According to on-chain analysis firm CryptoQuant's data, the ETH balance on exchanges has dropped to its lowest level in 8.5 years at 9.2 million ETH. This figure represents a decrease of approximately 10% in the past year.

Meanwhile, it is expected that the inflow into spot Ether ETFs will continue to increase until 2025. Since its launch in July in the US, spot Ether ETFs have received approximately $2.43 billion in investments. Analysts predict that the performance of Ether ETFs will further strengthen if regulators allow these funds to generate returns through staking.

2025 Prediction: $6,000 Level

Asset manager VanEck predicts that the spot price of Ethereum could reach $6,000 by the end of Q4 2025. Following the launch of spot Ether ETFs in July, Ethereum was expected to experience a similar rise to Bitcoin. However, weak initial entries have reduced the likelihood of Ethereum reaching its all-time high of $5,000 by the end of the year.