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Ethereum Price Prediction – ETH Faces Short-Term Pressure with $2,025 Recovery Still in Play

Highlights:

  • Ethereum trades at $1,614.71, down 3.76%, in line with the broader crypto market correction.
  • Trading volume falls 22.28% to $12.83B, suggesting reduced selling pressure and potential short-term price stabilization.
  • ETH faces a mixed outlook with a rebound toward $2,025 possible, but a breakdown risks $1,300 if support fails.

Ethereum (ETH) is in the red today, mirroring the market-wide intraday correction. When writing, Ethereum was trading at $1,614.71, down 3.76% on the day. However, unlike Bitcoin, Ethereum’s trading volumes have dropped over the last 24 hours, down 22.28% to $12.83 billion. This indicates that while Ethereum’s price is declining, the average holder is no longer inclined to sell. Such dynamics signal that the market believes the bear run is likely in its tail end and that Ethereum could be headed for a short-term rebound. Such expectations have solid grounds. 

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Potential Marketwide Rebound Could Send ETH Higher

One of the biggest factors likely driving the holder confidence in Ethereum is Bitcoin. Bitcoin moves the entire cryptocurrency market and is currently exhibiting traits that often precede a rebound. In past cycles, whenever more than 50% of Bitcoin holders are in the red, the bear market is usually close to an end, and bull runs follow. Data show that over 50% of Bitcoin is in loss territory.

Many analysts speculate that a quick drop to around $50k could be followed by a rally back to $100k or more. If such predictions prove correct, the whole market could be headed for a V-shaped recovery, sending it rocketing to new highs. For Ethereum, which has the confidence of both retail and institutional money, this could send it rocketing to new highs in the short to medium term. 

Yield Aspect to Ethereum Keeping Holders Locked In

The confidence in Ethereum is also likely driven by its yield. If the US CPI data points to possible higher rates for longer, non-yield-bearing ETFs, such as Bitcoin, they could lose favor with investors. However, Ethereum could see holders remain resilient, while capital could rotate out of Bitcoin and into Ethereum. Besides, through staking, investors can still earn passively while holding Ethereum through a bear market until there is a clear turnaround.

Some influential players have also pointed to Ethereum’s use case as a reason to hold long-term. Recently, Mark Cuban announced that he had sold most of his Bitcoin, while keeping all his ETH. He argued that Bitcoin had lost the plot as a store of value.

However, he pointed to Ethereum’s real-world uses, such as its smart contracts, as a reason to HODL. If this perception prevails across the institutional class, Ethereum could experience a rebound going into the foreseeable future. This can happen even if Bitcoin continues to show weakness or remains directionless. 

Marketwide Selloff Could Still Hurt Ethereum Short-Term

However, as with every other cryptocurrency, there is a risk of a steep correction. One of the biggest risks faced is institutional concentration. Recently, market analysts have noted that if cryptocurrency treasury companies are forced to sell to cover liabilities, it could trigger an unprecedented market correction. This is already evident in the recent Bitcoin correction, which has been driven mainly by Strategy’s decision to sell 32 Bitcoins.

Bigger sell-offs from the company could trigger the fear that analysts noted, driving Bitcoin to as low as $10k. In such a scenario, ETH, which is already heavily concentrated in the hands of companies like Bitmine, could drop to prices below $1,000.

Technical Analysis – ETH Bulls Lose Momentum After Rebound

After a failed rebound off the June 6 low of $1506.6, Ethereum bears are regaining control. If bears are strong enough to push Ethereum below the $1506.6 support, a short-term correction to as low as $1300 could follow.

Ethereum Price Chart
Ethereum Price Chart: TradingView

However, if bulls regain momentum and volumes are high, ETH could rally to the $2025.9 resistance in the short term. Of these scenarios, a rebound to $2025.9 is more likely. That’s because volumes suggest holders are no longer panic-selling, a factor that could prompt buyers to reenter the market.

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