Lots of folks think of the horse like a "rocking horse" where if the front goes up the back must go down. But living horses don't work that way. You don't want the back end to "go down" you want it to give energy and drive to the front end. This will cause the front to "rise" (assuming you're not hollowing the back).
This is where a few dressage lessons from a classical instructor can come in handy. They will teach you how to "collect" the horse. At is simplest, collection is using the leg to call forth energy from the rear and "capture" it in the hand. Then you can "meter" that energy. This will also give a very nice "head set" without the use of the things so commonly suggested to "raise" the head (like gag bits, long shank bits, etc.).
Of course this is all premature in a three year old. This is the stuff you do when horse is four or five. But if you do it right you'll be riding the horse, and getting compliments on how good it looks, when it's 25.