Ethereum Price Forecast: Why a Drop Below $2,000 is Anticipated

As Bitcoin maintains its position near record highs, Ethereum has struggled significantly, leading to mounting bearish sentiment across the altcoin market. This lackluster performance has indicated the onset of a bear phase for altcoins. Currently, Ethereum shows no signs of recovery, and market analysts express concerns about further declines.

Short-Term Ethereum Price Trends

According to crypto analyst Maddox Metrics, the projections for Ethereum’s price in both the near and distant future point toward continued declines. In the immediate term, there’s an expectation for Ethereum to breach critical support levels, potentially falling to around $1,900. This scenario aligns with a second wave in a five-wave analysis, suggesting that Ethereum is poised for lower levels as it discusses its longer-term market potential.

External Factors Affecting Ethereum’s Performance

Despite an uptick in buying activity, notably from institutional players and ETF providers, Ethereum’s price continues on a downward trajectory. Maddox attributes this situation largely to escalating geopolitical tensions, especially rising fears regarding potential international conflicts.

The analyst advises that patience will serve investors well during this turbulent period. Emphasizing the importance of a long-term strategy, he reassures that enduring market fluctuations tends to be more profitable than frequent trading based on transient news.

Long-Term Outlook for Ethereum

Even though the present analysis forecasts a temporary dip below the $2,000 threshold, the long-term potential for Ethereum remains positive. Maddox notes that the current downturn represents Wave 2 in a larger pattern, which follows the completion of a motive wave at the $2,700 resistance point.

Once this phase concludes, a bullish Wave 3 is expected to emerge, potentially paving the way for Ethereum to reach a new peak close to $5,000. The subsequent bearish Wave 4 will likely trigger another decline, but the final Wave 5 could escalate Ethereum’s price further to about $7,000. This upward momentum is projected to unfold throughout 2025 and into early 2026.