Will Ethereum Price Rebound After Crashing to 1-Month Low? Top Experts Weigh

Ethereum’s native cryptocurrency, Ether (ETH), experienced a significant decline on June 24, dropping by up to 5.85% intraday and a notable 18.50% from its recent local high, plunging below $3,250—its lowest level in over a month. This downward trend is particularly surprising given the potential approval of spot Ether exchange-traded funds (ETF) in the U.S. in July, which has sparked hopes for a strong rebound.

What are the top crypto experts saying about this unexpected dip and the future of Ether? Let’s delve into their insights and predictions.

Ether Selling Will Continue Until…

Millionaire crypto and stock trader Cameron Fous thinks Ethereum selling will continue in the coming months despite the buzz about ETF approval.

His bearish outlook takes cues from Ether’s historical tendency to test a long-term ascending trendline as support during its price dips. As of June 24, the cryptocurrency was trading at roughly 10% higher than the said support line, raising the likelihood of falling toward it—to roughly $3,000—in the coming days.

Interestingly, the target is closer to Ether’s 200-day exponential moving average (200-day EMA; the blue wave in the chart below), which further increases the cryptocurrency’s decline risks in July. Its daily relative strength index (RSI) is at 36.33, which also indicates that the Ethereum token has more room to decline.

A Knee-Jerk Reaction That Won’t Last

To independent market analyst Daan Crypto Trades, Ether’s price decline on June 24 is a knee-jerk reaction to the latest Mt. Gox update.

For the unversed: The defunct Bitcoin exchange announced on June 24 that it will begin distributing assets to clients—affected by the 2014 hack—during the first week of July. This decision comes after years of repeatedly postponing deadlines.

These repayments are expected to exert selling pressure on the Bitcoin (BTC) market. Early investors, who will receive assets that have significantly increased in value since their initial investments before 2013, are likely to sell at least part of their holdings. As a result, Bitcoin’s price fell to its monthly low on June 24, taking the rest of the market down alongside it.

“Mt. Gox Bitcoin selling will weigh down on BTC to some degree,” Daan Crypto Trades argues, adding:

“ETH and [altcoins] won’t have that issue, so I’m keeping a close eye on the ALT/BTC charts. Especially with the ETH Spot ETF being live soon.”

In other words, capital will keep rotating out of the Bitcoin market to seek shelter in altcoins, including Ether, which would limit its downside moves in the U.S. dollar markets. Daan Crypto Trades says, however, that the Ethereum token would need to reclaim 3,350 as support to ensure a solid rebound in July, following which it can rise toward $4,000 next.

Interestingly, crypto analyst XO identifies the area around $3,350 as a crucial level due to its historical significance across multiple timeframe charts. For instance, testing the level as support preceded a 40% price rally in the October-November 2021 session.

Ether ETFs Will Trigger Sell The News Scenario: Mechanism Capital

Andrew Kang, a founder, and partner at the crypto-focused venture capital firm Mechanism Capital, predicts that Ether could drop to as low as $2,400 following the launch of spot Ether ETFs.

A decline to $2,400 would represent nearly a 30% drop from its current price.

In a June 23 post on X, Kang explained that, unlike Bitcoin, Ether attracts less institutional interest. Additionally, there are few incentives to convert spot Ether into ETF form, and the network’s cash flows have not been very impressive.

“How much upside would an ETH ETF provide? I would argue not much,” said Kang. He added, “After the ETF launch, my expectation is a price range of $2,400 to $3,000.”