Ethereum price dips toes below $1,000, bulls quickly push back

• Ethereum price dips beyond the new area for recovery.
• ETH price will drop 50% before finding key support to halt the descent.
• Expect an L-shaped to W-shaped recovery, as current tail risks will linger for some time.

UPDATE: Ethereum price dipped below the psychological $1,000 mark during the weekend, as bears continued to dominate price action on Saturday. The market took a turn on Sunday, though, as the whole crypto ecosystem was able to bounce back and several coins recovered key levels, with Bitcoin leading the way back above $20,000. ETH price was even able to recover above $1,100, where it is trading at the time of this update (Monday, 10 GMT). The celebration of Juneteenth in the United States on Monday will likely keep markets under calm waters for most of the day but, despite the recent bounce, ETH bears are likely to continue to push for another break below $1,000. Now the question is, where will Ethereum bottom out?

Ethereum (ETH) price has lost too much intrinsic value this week to make a decent recovery to $1,404, from where it could rally back to $1,600. Instead, investors will need to take it on the chin and see another 50% price discount as ETH price could crash to $570 once it breaches $1,000. That could come quickly as a break below $1,000 will trigger doubt amongst investors and bite into the credibility of the second-biggest cryptocurrency.

ETH price could see a rapid descent as investors lose faith

Ethereum price was set to outpace at one point Bitcoin price action as media jumped all over the second-largest cryptocurrency only a few months ago. How quickly the image of Ethereum faded from brightest to worst performer in the class. Ethereum price is seeing cash flee by the minute, and with that, its decline is almost unstoppable. 

ETH price is holding on by a few threads, and once $1,000 is broken to the downside, expect those threads to give way. ETH price will tank in a falling knife price action and half in price around $570 to come to a halt, losing a lot of its feathers. If that discount is enough, it remains to be seen, but even then, a quick turnaround will not be a given and instead see a spun-out lateral move until signs are there that more funds are being poured into cryptocurrencies and demand picks up.

ETH/USD weekly chart

Should there be a turnaround, expect it to be on the back of the headline release with, for example, a breakthrough on peace talks with Russia or a retreat of Russian troops. That would give a sigh of relief through the markets and trigger a quick recovery with ETH price spun around quickly to $1,404 and following up to $1,688. With that, a new high for June would be printed.