After Nailing Ethereum (ETH) Exact Price Target, RektProof Reveals Why a Short-Term Correction Could Set the Stage

After nailing Ethereums (ETH) exact price target, RektProof reveals why a short-term correction could set the stage for a run to $4,000

After precisely calling the bottom of Ethereum (ETH) in April, one analyst is now setting the stage for a short-term correction that could pave the way for a run to $4,000.

On April 11, as Ethereum (ETH) price traded at $1,528, crypto analyst RektProof made a definitive prediction: "This is the area that you want to get positional longs or buy spot. Willing to bet my rep that we see $2,700 soon."

One month later to the day, ETH peaked at $2,738—validating the forecast with precision. Now, the same analyst warns of a potential 22% drop to $2,100 before Ethereum resumes its uptrend toward $3,200+. With such a bullish Ethereum price prediction, let’s explore why there is a need for a pullback before new highs.

This analysis: Top takeaways

• After nailing the Ethereum price rally to $2,700, one analyst says a 22% correction could set the stage for a run to $3,200 and $4,000

• The technical pattern unfolding in the market suggests that we might see a rebound from the $2,100–$2,200 support

• A breakout above $3,200 could propel Ethereum towards $4,000 to $4,100, where a massive amount of buy-side liquidity awaits

As the dust settles on May, we're left with some interesting tidbits of data. For instance, despite the recent drop in Bitcoin price, we can observe that ETH trades today around $2,280. This shows a classic bullish market psychology.

As we can see on the chart above, there was a substantial build-up of liquidity at the lower ranges of $1,752. Moreover, we can observe that Ethereum price is forming a bullish higher low near $2,100–$2,200 relative to the May 1st week’s $1,752 swing low.

This deep level of support also coincides with the Fib support and the last touchpoint of the long-term trendline.

Key support levels

The technical analysis provides valuable insights for investors. The cryptocurrency market is known for its volatility, making it crucial for traders to set clear targets and levels to watch.

Next Targets: $3,200 Breakout Could Fuel Run ETH Rally to $4,000

A rebound from the aforementioned support could trigger an initial rally to the $3,000 psychological barrier before attempting a retest of $3,200 as suggested by RektProof.

If Ethereum price clears this breakout phase, it is likely to target $4,000 to $4,100. This contains equal highs formed in 2024 and resting above these swing highs are buy-side liquidity. Hence, a sweep of this level could be an attractive proposition that pushes ETH higher.

"Overall bullish for one more major leg up on the market but I need bid areas to scale some swing longs," says RektProof.

The analyst adds that range formation after a massive rally like Ethereum’s will help in knowing "what to bid" before the next leg up.

Fundamental Tailwinds: ETFs and Fed Policy

Apart from Ethereum price action, the fundamentals of ETH are also looking good with $66.25 million in spot ETF inflows. This is a considerable improvement considering March’s $403 million outflows.

Another massive tailwind for Ethereum is the macro shift after the recent CPI print came in at 2.4% lower than expectations. As a result, investors are expecting a Fed rate cut announcement in the next meeting, which has historically been bullish for crypto.

Trading Strategy for US Investors

Why This Analysis Matters

With Ethereum price establishing a clear technical pattern and fundamental catalysts aligning, the coming weeks present a strategic opportunity for investors watching the second-largest cryptocurrency. While May ETF flow data remains underwhelming, the combination of improving technical indicators and favorable macroeconomic conditions suggests Ethereum may be establishing the foundation for sustained appreciation after its expected near-term pullback.

Should ETH follow the projected path through consolidation and subsequent breakout above $3,200, the asset would be positioned to challenge its previous all-time high and potentially establish new record valuations in the months ahead.

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