Crypto analyst Rekt Capital forecasts that Ether (ETH) may consolidate within a range of $3,000 to $4,000 in the near term, following a recent 10% decline.

Currently priced at $3,466, Rekt warns that Ether could see a further drop of over 10%, potentially nearing the $3,000 mark, and advises monitoring for a possible bottom formation in this area.

The $3,000 level is seen as a psychological support, with Ether last trading below this threshold on November 9, 2024, after previously remaining under $3,000 since early August.

Despite peaking at $4,077 on December 6, 2024, Ether has struggled to maintain prices above the psychological resistance level of $4,000.

Analysts point to low Ethereum supply on exchanges and increasing inflows into spot Ether exchange-traded funds (ETFs) as potential drivers for future price momentum.

As of December 17, 2024, the balance of ETH on exchanges has reached an 8.5-year low of 9.2 million ETH, reflecting a nearly 10% decrease over the past year.

Since their launch on July 23, 2024, spot Ether ETFs have accumulated around $2.43 billion, with expectations for continued growth into 2025, particularly if yield-generating staking is allowed.

However, despite initial optimism for Ether ETFs, weak inflows compared to Bitcoin ETFs make it less likely for Ether to surpass its all-time high and reach $5,000 by the end of 2024.

Looking ahead, asset manager VanEck predicts that Ether's spot price could reach $6,000 by the fourth quarter of 2025, suggesting a bullish long-term outlook.

Rekt also notes the potential development of an inverse head and shoulders pattern, which could signal a trend reversal for Ether's price.