Ethereum (ETH) has shed 4.5% of its value in the past 24 hours as cryptos continue to bleed following the end of the U.S. government shutdown.

Macroeconomic conditions worsened as the head of the Federal Reserve, Jerome Powell, warned that the U.S. central bank may not cut rates in December, as the market initially expected.

As a result, ETH has shed nearly 15% of its value in the past 7 days, briefly plummeting below the $3,000 psychological support multiple times this week.

Trading volumes have surged by 48% in the past 24 hours, now accounting for 14% of the token’s circulating supply.

In the past 7 days or so, over $700 million worth of Ethereum (ETH) long positions have been wiped out as a result of the latest downturn. If ETH loses the $3,000 support, the sell-off could accelerate.

Meanwhile, investors have poured out over $900 million from Ethereum exchange-traded funds (ETFs), data from Farside Investors indicate.

These are the largest net outflows on record since February, and could possibly anticipate the beginning of a bear market. Losing the $3,000 area seems like the most dangerous negative catalyst for ETH, as it could set off another cascade of forced liquidations and push the price to much lower levels.

Ethereum Price Prediction: ETH Can Deliver 57% Gain If It Fully Recovers

The daily chart shows that a descending price channel has formed as a result of the latest price action. ETH encountered strong selling pressure multiple times at $4,700. Since bulls were unable to push the price higher, the token collapsed.

In this higher time frame, the key support to watch would actually be $2,800 – not $3,000. If the price dives below this mark, we could expect a much deeper correction toward the low 2000s.

The Relative Strength Index (RSI) has briefly touched oversold levels again, but has not yet reached an extreme. We could expect a rebound off $3,000, but the most likely landing zone for this crash would be the $2.8K level.

The price would have to climb above the 200-day exponential moving average (EMA) first to resume its upward trajectory. Market conditions are still unfavorable. However, the market may be overreaction to what can be considered a slight change in the Fed’s monetary policy.

Hence, buyers have the upper hand here. Scooping up ETH at these prices means a 57% upside potential if the token rises to $4,700 again at some point.

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