Ethereum price prediction – I think it is still going to $5k but there is a question from where…

For traders and investors looking for strategic entry points, here's a deep dive into Ethereum's price action, key support levels, and what's ahead after the currency's volatile movements last week.

Weekend recap: Ethereum decline and key insights

📉 Ethereum in the future has fallen nearly 16% from its recent highs, led by Bitcoin's dance around the $100,000 mark. Hunt led to an over liquidity $500 million in long liquidation between Thursday and Friday.

Despite the decline, Ethereum's long-term bullish structure remains intact. Here's why:

1. Bullish flag breakout in August: Ethereum rallied above its bullish flag and closed the gap at $3,000 – a psychological price magnet.
2. New Long Term Highs: Onward December 6The highest value of the EBTC share at 2024 was 4 142.50 US dollars. This will determine the target of the flag pole.
3. Withdraw for profit: A recent profit is expected after hitting these highs.

Current support levels to watch 🔑

Ethereum has major institutional levels to monitor capacity dip buying opportunities. Here's a breakdown:

1️⃣ Low Value Range (December 9) – $3,559

• This is the a line in the sand to buyers.
• Institutions and algos seem to view this level as a critical test of support.
• If it holds, expect a rebound to reconfirm recent highs.

2️⃣ Low Value Range (November 26) – $3,223

• If $3,559 fails, the next critical level is $3,223.
• This area is aligned with institutional interest and high activity.
• A dip here could provide a strong entry for buyers in the long run.

3️⃣ Low Bare Value Range (November 15) – $3,070

• If $3,223 breaks, this level becomes an even better buying opportunity.
• Its importance comes from being unproven, making it a high probability reversal zone.

Strategic Notes for Traders

🛠️ Here's how I approach these levels:

1. First test jump: Look for a bounce at $3,559 to confirm buyer strength. If it fails, focus on $3,223.
2. Strict stop: Keep tight stops – eg, at $3,246 – when you enter $3,223 very close to manage risk.
3. Build a serial position: Use these levels to set unusual purchase orders for a net entry strategy.

What next? Ethereum Long Term Bullish Case

Despite the short-term withdrawal, Ethereum remains in a long-term bullish trendaiming $5,000 with patience. Here's why:

1. Historical VWAP responses:

   • Ethereum is trading near a VWAP from June 2022a level that has been a key support in the past.

2. Institutional Profit Taking vs. Accumulation:

   • Institutions often take profits near recent highs, as seen at $4,142.50, before resetting on a dip.

3. Possible double bottom:

   • If Ethereum tests and holds $3,223, a double bottom could be created, moving it higher.

Risk Management Reminder 🚨

Remember, Crypto trading has risks. These levels and strategies are based on volume profiles and institutional behavior. Always trade with proper risk management:

• Have clear stop loss levels.
• Avoid chasing price action.
• Be patient and disciplined when waiting for admissions.

Final takeaway

Ethereum remains bullish for the long term, with $3,223 and $3,070 are attractive dip buying levels for patient traders and investors. If these levels hold, Ethereum could visit $4,000+ again and eventually climb to $5,000. However, a sustained close below $3,070 could invalidate the bullish premise.

📈 Trade fast, stay safe, and let the levels guide you. A visit ForexLive.com for additional views.