Ethereum (ETH) Price: Can It Break $1,000?

Ethereum price fell to $1,076 on the 9th of November, and dramatically recovered to $1,351 the next day. This was short-lived, as another downtrend was seen and the price approached the November 9 low again. We may see a breakout to the downside.

Looking at the 4-hour chart, it can be seen that the price has formed a descending channel from November 10th. We also see that another interaction is being made with its support level. With another retest happening, there could be a rebound, but it is still unclear whether or not this could mark a higher low compared to November 9.

Ethereum (ETH) price context

The context of price progression is key in the upcoming forecast. Since the 5th of November, the price has fallen sharply by 35% to its lowest level on the 9th of November.

This impulsive drop came after the recovery that started on September 21 when the price was trading at $1,244. A 33.5% increase was seen at the November 5th high of $1,661.

Ultimately, this rally was down from the two previous highs on August 14th and was a retest of the resistance area above. Price rejection at those levels caused a drop in lot volume, leading to levels below Sept 21st.

This lower low invalidates the possibility that the price started to rally impulsively to the upside from September 21st, thus confirming that this uptrend was corrective in nature.

Hence, the downward movement from November 5th is another impulse. Since it seems to be over and the price has consolidated, it makes no sense to start another uptrend. However, there could be some upside potential before the downtrend continues.

If the downward movement from November 5th is the beginning of another downtrend, and the first sub-wave ends on the 9th, then the currently visible formation must be its corrective wave.

It is highly unlikely, although it could happen, that the rally from 9 to 10 is a completion of this corrective sub-wave ABC. Most likely, it was only wave A with the formation of the descending channel after wave B. This means that another increase may occur to complete wave C, with an expected price target around $1400, with the same length as the assumed wave A.

Looking back, we can see that this $1,400 area is an important area. This is why the target overlaps with the consolidation zone from September 21st. It could be a retest of another lower high, which could give sellers a better price before rushing further to the downside.

Instead, the price has already completed the second wave of higher degree and lower ABC correction on November 10th. This means that the descending channel that we are witnessing next is the next sub-wave of the third wave in the downtrend.

There are many problems with this number. First of all, there is the unlikely possibility that the increase from November 9th is ABC and a correction of the same degree as the previous drop. Be that as it may, the bearish channel is definitely not a five-wave impulsive move when subdivided as it is in a three-wave move.

But according to this number, a similar price advance can be expected. However, only a much lower price target for the upward move will be seen, which would be a lower high compared to November 10th, likely around $1240.

Either way, the picture is bleak for the price of Ethereum, as a break below $1,000 is expected eventually. It is not a question of if, but when? The conclusion is that it will be implemented from the current levels, but some kind of recovery will happen first.

In the initial scenario, wave C should develop around $1,400, after which the next wave to the downside is expected to push the price below $1,000.

In an alternative account, the price will make a slight lower bottom. Possibly, it will retest the low of November 9, and bring an increase to the lower high to $1,200. But from there another impulse wave is likely in the downward direction, such as the third wave of higher degree.

The final price target would be well below $760, but this area would be the first possible end point for the next bearish move. If the price starts moving in a five-way manner from November 5th, the final price target for completion will be in the $600 region.

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