Ethereum Price Prediction: Why ETH Could Rebound to $3000 Soon

Highlights:

• Ethereum is in an intraday correction after the Yearn Finance exploit
• Correction appears to be losing steam, indicating that it is priced in
• The upcoming Fusaka upgrade could trigger a rebound to $3000 soon

Ethereum (ETH), like the rest of the market, is in the red today. At the time of writing, Ethereum was trading at $2,838.60, down 5.5% for the day. However, Ethereum trading volumes have increased exponentially throughout the day. They are currently up by 125.98% to stand at $25.16 billion. 

This is an indicator that short-term holders are panic-selling Ethereum. It could also mean that there are many short sellers whose pressure is pushing Ethereum’s price lower in the short term. Looking ahead in the short term, there is a likelihood that Ethereum could drop further before rebounding to last week’s prices above $ 3,000. 

Yearn Finance Hack Triggers Ethereum And Broader Market Selloff

One of the factors likely to push Ethereum lower is the Yearn Finance hack, which resulted in millions of dollars lost. The breach resulted in the minting of excess yETH, creating an invalid supply. This has shaken confidence across the market and pushed all cryptocurrencies lower.

For Ethereum, which is directly affected through yETH, this could trigger a more significant selloff in the short term. The selloff in Ethereum could also accelerate if the whole Yearn Finance issue pushes Bitcoin to lows of $80k. This could signal significant market weakness and could lead to Ethereum dropping to prices as low as $ 2,500 in the short term. 

🚨 Yearn Finance yETH Exploit:
An attacker minted 235T yETH in an infinite-mint exploit, draining ~$2.8M in ETH & LSTs from Balancer pools. ~1,000 $ETH was later mixed via Tornado Cash. Yearn says the issue was in legacy yETH, not V2/V3 Vaults—TVL remains >$600M.
In a twist, $YFI… pic.twitter.com/EbGmdM3sbQ

— Wise Crypto (@WiseCrypto_) December 1, 2025

Upcoming FOMC Meeting Likely to Weigh in On ETH

Besides the uncertainty surrounding Yearn Finance, a significant amount of economic data is expected to be released soon. Investors are holding up to see whether the Federal Reserve will cut interest rates or not. While the odds of a rate cut have increased to 89%, considerable uncertainty remains before confirmation.

As such, investors may be moving away from high-risk assets that are likely to experience the most volatility in this period. Ethereum and other cryptocurrencies fall in this category. For altcoins, such as Ethereum, which carry a higher risk than Bitcoin, the odds of increased sell-side volatility ahead of the FOMC could be elevated.

Polymarket has the December rate cut priced at 89%.

The market knows what's coming. But the rate cut isn't the story, it's the combination.

The Fed ending QT while simultaneously cutting rates is a full regime shift from tightening to easing.

Send it. https://t.co/I0L6iSWk9N pic.twitter.com/SLjtnlhTVa

— Diligent Degens 💡 (@DiligentDegens) December 1, 2025

President Trump’s recent assertions about the next Federal Reserve chairman have also added a layer of volatility in risk-on assets. Speculation is high that he will likely go for a highly dovish Federal Reserve Chairman.

If true, this could be bullish for Ethereum and other cryptocurrencies in the long term. That’s because it would mean a significant increase in liquidity going forward. However, until the name is confirmed, the market will remain uncertain, and money will likely flow more into risk-off assets such as Gold.

Per Axios, “President Trump said Sunday he's decided who he'll nominate to be the next Federal Reserve chair.”
Both this issue and the December rate decision currently dominate Fed-related conversations.
The third issue, as discussed here, is how will the new leadership handle… pic.twitter.com/pqYIhoWsd7

— Mohamed A. El-Erian (@elerianm) December 1, 2025

Upcoming Ethereum Upgrade Likely to Trigger Ethereum Rebound

However, once the volatility, especially that related to Yearn Finance, settles, the fundamentals favor an Ethereum rally. One of the key factors likely to trigger this rally is the upcoming Fusaka upgrade. Fusaka upgrades are expected to go live on the Ethereum mainnet on Wednesday, December 3. 

The upgrades are expected to significantly improve Ethereum’s efficiency, both in terms of speed and transaction costs. This will position Ethereum even better than it already is in terms of institutional adoption. Capital could start flowing strongly into Ethereum, pushing the price to new highs in the foreseeable future.

1/ Fusaka is coming December 3rd.

Ethereum’s next major upgrade shows that the network can grow to meet global demand, without compromising on decentralization or permissionlessness.

Whether you’re a user, builder, institution, or operator, here’s how Fusaka will impact you. pic.twitter.com/FKsqdZiwMM

— Ethereum (@ethereum) November 28, 2025

Technical Analysis – ETH Loses Critical Support Level

The crash of the last 24 hours has seen Ethereum drop through the $2870.2 support level. If bears sustain this momentum, Ethereum could drop to $2500 in the short term.

On the other hand, if Ethereum bulls regain momentum and push Ethereum back above $2870.2, then a rebound to the $3048.6 resistance could follow. Of these two scenarios, a rebound to $3046.8 is more likely. That’s because bulls already appear to be pushing back, an indicator that the market has priced in the Yearn Finance hack.