Ethereum Struggles to Break $3,000: Year-End Predictions

The price of Ethereum has had difficulty regaining the significant $3,000 level over the past 48 hours. This ongoing struggle has raised concerns about potential declines in the cryptocurrency's value if this key support level is not reclaimed soon.

Key Takeaways

Ethereum struggles to reclaim the $3,000 level, raising concerns about potential declines.
Market analysts predict further downside risks, possibly leading Ethereum to around $2,800.
Significant liquidity overhead may hinder upward movement unless Ethereum can break this barrier.
A long-term bearish scenario suggests Ethereum could drop to $1,300 by 2026, according to certain predictions.

Ethereum

Analyst Predicts Possible Downward Movement

Market analyst Ted Pillows highlighted on social media platform X (formerly Twitter) that if Ethereum does not recover above the $3,000 mark quickly, it could face additional downward pressure, possibly leading to prices around $2,800 in the near future. This scenario would reflect an approximate 5% drop from its current trading price, which hovers just above $2,940. This continued difficulty adds to a substantial 16% decline noted in the monthly timeframe, emphasizing a fragile market for broader cryptocurrencies.

Another analyst, Columbus, aimed to explain Ethereum's underperformance compared to Bitcoin (BTC). He noted that Ethereum is still trading below its Volume Weighted Average Price (VWAP), indicating challenges in gaining momentum above this important benchmark.

Ethereum
The daily chart illustrates ETH's struggle to break the $3,000 barrier. Source: ETHUSDT on TradingView.com

The bounce observed between the $2,800 and $2,850 range appears to be more reactive than forceful. According to the analyst, this suggests that while there are buyers, confidence in the upward movement is weak.

Columbus further remarked on the significant liquidity positioned overhead, especially within the $3,050 to $3,250 range. This liquidity has effectively restrained any attempts to push prices higher. Unless Ethereum can reclaim this area and maintain stability above it, movements upwards are likely to be temporary adjustments rather than indications of a long-term trend.

Conversely, if Ethereum fails to hold the $2,850 level, it could be at risk of greater losses, potentially leading to a downturn towards lower liquidity areas between $2,400 and $2,700, where a significant amount of liquidity is concentrated.

Will Ethereum Drop to $1,300 in 2026?

Looking further ahead, market analyst CryptoBullet painted a less optimistic picture for Ethereum's future trajectory for 2026. He has proposed a new fractal model that suggests bearish outcomes for investors who are hoping for a price increase in the coming year.

In a recent social media post, CryptoBullet shared a daily chart of Ethereum, outlining key price targets. He indicated that although a price recovery might happen in January and February, subsequent months could experience a sizable downturn.

Ethereum
Current price actions of ETH reflect similarities to its performance in 2022. Source: CryptoBullet on X

According to this analysis, any potential recovery for Ethereum could fail against existing resistance levels between $3,600 and $3,800, possibly resulting in a dramatic decrease to a target price of $1,385. If this fractal model aligns with Ethereum's performance in 2022, it could indicate an astonishing 63% drop in value for the leading altcoin.