Ethereum’s Price Volatility and Downtrend Continues
Ethereum (ETH) has been facing a challenging time in the crypto market, with the price struggling to maintain its bullish momentum. Recent indicators suggest that Ethereum could face further downward pressure, with a potential drop towards the $1,275 level.
Despite a brief bounce above $1,550, Ethereum’s attempt to flip the level bullish seems to be failing. The selling pressure in the ETH market remains strong, signaling that bulls may experience more losses in the near future.
Several factors contribute to Ethereum’s bearish sentiment, including the U.S. SEC’s decision to delay its ruling on ETH ETF staking and in-kind redemption until June 2025. Additionally, ETH whales have been selling off their holdings, further adding to the negative market sentiment. The rise of AI as a potential threat to decentralization also casts a shadow over Ethereum’s future prospects.
On April 9th, ETH experienced a 20.5% bounce from $1,385 to $1,670. However, the bulls have struggled to keep the price above the $1,550 level, which was a crucial support level during the recovery from the bear market in 2023. Ethereum’s price trend has been bearish since January, with a series of lower highs and lower lows indicating a downtrend.
Technical indicators show that Ethereum is likely to fall below the $1,550 level once again, with the most recent lower high at $1,957. The OBV and RSI both suggest bearish momentum, with persistent selling pressure in the market.
The liquidation map indicates that downward pressure on Ethereum is likely to continue, with high-leverage liquidation levels between $1,515 and $1,575 creating a magnetic zone for the price to drop towards. Once liquidity at these levels is absorbed, a potential rebound towards $1,650-$1,700 could follow.
In conclusion, Ethereum is facing short-term volatility and a continued downtrend in the market. Traders and investors should exercise caution and consider the risks involved in trading ETH. This information is for informational purposes only and should not be considered financial advice.