Ethereum Faces Short-Term Correction but Could Hit $5,000 by Year End, Analyst Predicts

Ethereum’s Taker Buy Sell Ratio below 1 signals seller dominance, but the market structure still favors a continued bullish outlook.

Price consolidation near $3,400 shows weaker buyer activity, with traders expecting accumulation to increase near the $2,955 support level.

According to the analyst, Ethereum could rebound strongly after the correction phase, aiming for the $5,000 level before the year closes.

Ethereum continues to face short-term selling pressure, yet its broader market outlook remains optimistic. Despite weakening buyer momentum, analysts expect Ethereum to sustain its upward trajectory toward $5,000 by the end of the year.

Seller Pressure Limits Ethereum’s Upward Momentum

The Ethereum market currently shows signs of seller dominance, as the Taker Buy Sell Ratio on Binance hovers slightly below 1. This metric reflects a market environment where sell orders outweigh buy activity, leading to limited price acceleration. The ratio’s current position suggests that traders are engaging in controlled profit-taking rather than large-scale selloffs.

Around the $3,400 level, Ethereum’s price has been consolidating, with reduced buying strength evident. The lack of strong spot market demand has weakened momentum, creating a cautious tone among traders. Short-term pressure from sellers continues to influence price behavior, while futures markets experience a growing risk of long liquidations.

However, the ratio’s proximity to the neutral 1.0 mark signals that market sentiment has not turned bearish. The selling activity remains measured, pointing to a temporary correction phase. This controlled structure reflects confidence in Ethereum’s long-term strength, supported by consistent investor participation despite short-term challenges.

Market observers note that as long as the Taker Buy Sell Ratio does not fall substantially below 1.0, Ethereum’s price action is expected to stay within healthy corrective boundaries. This phase may provide opportunities for accumulation near the key support zone.

Correction Phase Seen as Opportunity Before Year-End Rally

Current data suggests that Ethereum may experience an extended correction toward the $2,955 support level. This level is viewed as a critical zone where new buyers could re-enter the market, restoring momentum. The pattern aligns with typical consolidation periods observed during previous uptrends.

As sell pressure dominates, the short-term sentiment remains defensive. Nevertheless, underlying market construction demonstrates strength, suggesting long-term players are holding their positions. Futures traders, on the other hand, face liquidation risk from further downside if prices remain in their current range

Nevertheless, analysts remain that the long-term structure for Ethereum is still bullish. This orderly decline is simply a natural pause in the broader upward trend. With buying interest simply stabilizing around lower levels, demand may build in front of the next more aggressive upward move.

By maintaining this technical structure, Ethereum retains its potential to recover strongly. Many traders expect that once buyer momentum returns, the price could rebound and move toward the projected $5,000 target before the year concludes.

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