Ethereum Likely to Fall Below $3,500 After ATH Rally Says Analyst
Benjamin Cowen, a crypto analyst, issues an Ethereum price prediction forecasting a retracement to the 21-week exponential moving average (EMA), now below $3,500, after ETH surged to new all-time highs. This recurring Ethereum price retracement pattern, observed since April, typically precedes a renewed rally. Cowen cautions traders about a potential bull trap near $4,900. Meanwhile, a whale acquired $1 billion worth of ETH—bringing total staked holdings to $3.5 billion—and spot ETF products recorded inflows of 286,000 ETH last week. Traders should monitor Ethereum price at the 21-week EMA support level and spot ETF flows for market direction signals.
Bearish
Cowen’s forecast of a pullback below $3,500 signals short-term bearish pressure on ETH. Similar retracements after new ATHs—like the one in April—have historically triggered temporary dips before resuming upward trends. The warning of a potential $4,900 bull trap may prompt false breakouts and increased selling. However, strong whale purchases and significant spot ETF inflows could provide underlying support. In the short term, expect heightened volatility and possible stop-loss triggers; in the long term, the correction may consolidate gains and lay groundwork for the next rally.