Ethereum Price Faces Downward Pressure, Risks Drop to $1,400

Ethereum’s price faces significant pressure, potentially dropping to $1,400 due to a prevailing bearish outlook. Key technical indicators highlight resistance at a Fair Value Gap and a critical Fibonacci retracement zone. Moreover, the Stochastic RSI suggests an impending downturn, with current trading around $1,627 indicating the heightened risk of further declines.

Ethereum currently faces significant downward pressure, potentially dropping towards $1,400 amid prevailing bearish sentiments. Despite attempted recoveries, the market structure appears to favour sellers. According to a recent analysis by the crypto expert Youriverse, a continuous decline could lead Ethereum to lower support levels if the downtrend persists.

Technical indicators point to a substantial Fair Value Gap (FVG) present in Ethereum’s 4-hour price chart. This gap emerged following a steep 10% drop last Sunday, indicating a strong area of selling dominance, which has impeded upward movements in Ethereum’s price. The recent price action demonstrates a repeated rejection within this gap, suggesting intense selling pressure that could drive the price down further.

Ethereum has approached a crucial zone termed the “golden pocket” on the Fibonacci extension chart derived from the $1,383 low on April 9. A decisive move above this resistance is crucial; otherwise, the risk of a drop below $1,400 increases. If Ethereum fails to break through the 0.786 Fibonacci level at $1,724, a substantial rejection leading to further declines remains plausible.

The Stochastic RSI adds another layer of bearish sentiment, indicating an overbought condition on the daily timeframe. With recent inflows lifting the price from $1,383, the current shift towards overbought signals potential weakness. A rejection at the FVG in conjunction with rising selling pressure could lead to a downturn for Ethereum, which was recently rejected at $1,650.

As of now, Ethereum’s price hovers around $1,627, with the risk of correction looming large. The combination of an overextended Stochastic RSI and ongoing resistance suggests the possibility of a significant price drop if current trends continue. Investors should remain vigilant and aware of these dynamics to navigate potential investment risks effectively.