Bears Drag Ethereum Below $3,000, But Can They Hold On?

Ethereum had maintained an impressive run of over $3,000 since this month began. Hitting this price target was a milestone for the coin. Given it had come after EIP-1559 had gone live. Bulls had taken control of the price for as long as possible. Holding it above $3,000 as EIP-1559 burned away a portion of new ETH coming into the market.

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Although now, the bulls’ hold on the market seems to be slipping. The early hours of the morning saw the price of Ethereum fall below $3,000. Owing to a widening stretch of low momentum in the market. The price has not recorded any significant movement after losing the $3,100 stronghold held for a good portion of the rally. The gap between its most recent highs and low show a trend of higher highs and higher lows. Indicating that bears may not be able to hold declining prices for much longer.

Ethereum Recovery Pattern

The declining prices have not discouraged investors. If anything, sentiments towards the market have skewed towards positive these past weeks. The period of extreme fear in crypto had grinder to a half. Market sentiment had slowly but surely moved its way into neutral. Then moving on into the greed, to land in extreme greed.

ETH price recovers above $3,000 again | Source: ETHUSD on TradingView.com

Investors want crypto and they want it now. Accumulation patterns suggest mounting buy pressure on investors. Bitcoin’s price has held up quite well in the mid-$40K range. Allowing the altcoins to also hold their own at varying degrees of strength. In the case of Ethereum, holding its price firmly around $3,000. Despite this being the third dip below $3,000 in a week’s span, ETH is not giving into bearish pressures.

Dips after rallies are needed to set up further runs. So the current dips look to be only a minor market correction. Just a setup in the way to a new all-time high. The rebound back above $3,000 after the dip shows the bears do not have any meaningful hold on the price.

Current Price Outlook

As Ethereum continues to trade above $3,000, the short-term price outlook is favorable. Dips will no doubt occur with recoveries. But these dips will be more or less minor blips on the radar. A rebound back above $3,300 looks imminent if the current position holds till the weekend.

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Weekend trade volumes will most likely come with a push in the price of Bitcoin. And by extension, the price of Ethereum. Even as altcoins continue to gain more market share from Bitcoin, ETH is set to outperform before the end of the year.

More blocks are becoming deflationary on the Ethereum network. Leading to a more valuable ETH as coin supply slows down. With the accumulation and increasing ETH volume being staked, decreased ETH circulation will only lead to a surge in the price.

Featured image from Ethereum World News, chart from TradingView.com