Ethereum (ETH) fell to a four-month low of $3,160 yesterday, erasing its yearly gains and sparking a wave of liquidations. However, despite this seller-driven downturn, some market analysts believe that the asset’s core upward trend remains unbroken and that it can still reach $5,000 by year-end.
Selling Pressure Deepens, but Buyers Stay Hopeful
The world’s second-largest cryptocurrency by market cap went through some heavy volatility this week, dropping as low as $3,160 before a modest rebound.
CryptoQuant analyst PelinayPA has pointed out that the Taker Buy-Sell Ratio on Binance has been hovering just below 1.0, confirming that the market is dominated by sellers. She noted that while the dynamic creates short-term downward pressure, it does not suggest panic. Instead, she described it as controlled profit-taking within an ongoing uptrend and expects ETH to find strong buyer interest around the $2,955 to $3,000 zone before resuming its climb toward $5,000.
I believe the price will find buyers around this level. The main trend remains upward, and I expect these buyers to potentially push the price toward $5,000 by the end of the year.
Chart technician Ted Pillows identified $3,500–$3,600 as the key zone to reclaim for any bullish momentum to emerge. According to him, the asset could be pushed back toward the $2,800 support area if it fails to break above that range.
Network Activity Slows as Price Consolidates
Beyond the charts, Ethereum’s network fundamentals have also weakened, with daily active addresses cratering by 24% since mid-August. In the past, when there was less activity on the blockchain, prices tended to go down as well, because there were fewer transactions and less interest in dApps.
Meanwhile, at the market, CoinGecko data shows ETH is down 12.2% in the last seven days and 28% across the month, underperforming Bitcoin’s modest rebound. The ETH/BTC ratio stands at 0.03284 BTC, indicating a shift in capital toward Bitcoin. However, Ethereum is trading above its two-year trendline support, which it has held since 2022. Many observers consider this structure to be the last major defense before a potential bounce.
For now, sentiment remains mixed. Liquidity clusters around $2,800–$3,000 are drawing attention as potential accumulation zones, while bulls are looking to reclaim $3,600 to confirm renewed strength. But with both technical and macro pressures in play, including U.S. Federal Reserve tightening and ongoing liquidity outflows, traders appear cautious.
Still, as PelinayPA’s analysis suggested, the broader trend remains constructive. If Ethereum can defend its current support and regain key resistance zones, the path toward $5,000 by year-end may still be within reach, albeit a steeper climb than once expected.