Ethereum Price Forecast: $2k Target Before $4k Milestone

According to Polymarket, a renowned prediction platform, Ethereum’s price is anticipated to undergo a decline to $2,000 before rebounding to $4,000. The likelihood of Ethereum (ETH) dropping to $2,000 before the end of December has been on the rise since August 25, when it hit a low of 54%. By August 27, these odds had escalated to 60% as the coin retreated from this week’s peak of $2,818 to $2,600.

Ethereum, much like many other alternative coins, has been entrenched in a significant downward trajectory since March, when it reached its pinnacle at $4,085. Consequently, the chances of it plummeting to $2,000 have increased as the coin would need to decrease by 23%. Conversely, it would necessitate a 54% surge to attain $4,000.

In another Polymarket survey featuring $231,000 in assets, there is an 8% probability of Ether surging to $3,000 before September. Contrarily, in a separate poll with $1.1 million at stake, the majority of traders do not anticipate Ethereum hitting a record high this year.

Throughout the year, Ethereum has encountered various obstacles. It faces fierce competition in the stablecoin market, where Tron (TRX) manages billions of dollars in daily transactions. Additionally, it contends in the Decentralized Finance sector, where Solana (SOL) dominated DEX volume in July amid heightened demand for its meme coins. In July, Solana’s DEX volume stood at $57 billion, slightly surpassing Ethereum’s $54.5 billion. However, this month, Ethereum has taken the lead significantly, handling $50 billion compared to Solana’s $33 billion.

One of the primary challenges Ethereum confronts is the lack of traction among investors for its exchange-traded funds. Data from SoSoValue illustrates that these funds have experienced a cumulative outflow of $477 million since their inception, with outflows recorded over the past eight consecutive days.

Furthermore, Ethereum has recently formed a death cross and exhibited a series of declining highs and lows. Notably, the coin has also displayed a bearish flag chart pattern, indicating potential further downside. Should this scenario materialize, the critical level to monitor would be this month’s low at $2,113. A breach below that point would heighten the probability of Ethereum descending to $2,000.