• Ethereum price dips beyond the new area for recovery.
  • ETH price will drop 50% before finding key support to halt the descent.
  • Expect an L-shaped to W-shaped recovery, as current tail risks will linger for some time.

UPDATE: Ethereum price dipped below the psychological $1,000 mark during the weekend, as bears continued to dominate price action on Saturday. The market took a turn on Sunday, though, as the whole crypto ecosystem was able to bounce back and several coins recovered key levels, with Bitcoin leading the way back above $20,000. ETH price was even able to recover above $1,100, where it is trading at the time of this update (Monday, 10 GMT). The celebration of Juneteenth in the United States on Monday will likely keep markets under calm waters for most of the day but, despite the recent bounce, ETH bears are likely to continue to push for another break below $1,000. Now the question is, where will Ethereum bottom out?

Ethereum (ETH) price has lost too much intrinsic value this week to make a decent recovery to $1,404, from where it could rally back to $1,600. Instead, investors will need to take it on the chin and see another 50% price discount as ETH price could crash to $570 once it breaches $1,000. That could come quickly as a break below $1,000 will trigger doubt amongst investors and bite into the credibility of the second-biggest cryptocurrency.

ETH price could see a rapid descent as investors lose faith

Ethereum price was set to outpace at one point Bitcoin price action as media jumped all over the second-largest cryptocurrency only a few months ago. How quickly the image of Ethereum faded from brightest to worst performer in the class. Ethereum price is seeing cash flee by the minute, and with that, its decline is almost unstoppable. 

ETH price is holding on by a few threads, and once $1,000 is broken to the downside, expect those threads to give way. ETH price will tank in a falling knife price action and half in price around $570 to come to a halt, losing a lot of its feathers. If that discount is enough, it remains to be seen, but even then, a quick turnaround will not be a given and instead see a spun-out lateral move until signs are there that more funds are being poured into cryptocurrencies and demand picks up.

ETH/USD weekly chart

ETH/USD weekly chart

Should there be a turnaround, expect it to be on the back of the headline release with, for example, a breakthrough on peace talks with Russia or a retreat of Russian troops. That would give a sigh of relief through the markets and trigger a quick recovery with ETH price spun around quickly to $1,404 and following up to $1,688. With that, a new high for June would be printed.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Three reasons why Chainlink could rally

Three reasons why Chainlink could rally

Chainlink has noted accumulation by large wallet investors for the past two weeks. Nearly $110 million in LINK has been withdrawn from exchanges in this time period. LINK sustained above $13 on Sunday, extending gains by nearly 1%. 

More Chainlink News

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple holds on to double-digit gains, highest in top 20 cryptocurrencies

Ripple rallied over 19% in the past seven days per CoinGecko data. The altcoin broke past resistance at $0.50 on the one-year anniversary of Judge Analisa Torres’ XRP ruling. 

More Ripple News

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin breaks $60,000 as market anticipates re-election of pro-crypto former President Trump

Bitcoin extended gains post the shooting at the rally of US Presidential candidate Donald Trump. The former President is a pro-crypto candidate, and a report by Fortune shows that Trump’s chances of winning the race increased after the Saturday events.

More Bitcoin News

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum ETF launch could push Ether to new all-time high, on one condition

Ethereum (ETH) traders are watching two key events closely: the anticipated approval of the Spot Ether ETF and the activities of whales, the large wallet investors holding ETH. An analyst has predicted that the odds of Spot Ether ETF is 72.7% this week. 

More Ethereum News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows. On-chain analytics indicate that whales are accumulating BTC during dips, potentially foreshadowing an imminent rally in the days ahead.


Read full analysis