Ethereum Price Forecast: ETH Faces Range-Bound Trading After Oversold Levels

Ethereum’s price forecast indicates potential range-bound trading between $1,300 and $1,700 after hitting oversold levels at $1,380. Market sentiment slightly improved as the Fear and Greed Index increased. Today’s speech by Jerome Powell could impact volatility. Despite facing heavy competition and recent performance decline, Ethereum maintains a leading position in DeFi TVL. The upcoming Pectra upgrade may influence the network but does not resolve competitive challenges. Historical trends suggest consolidation rather than immediate recovery.

Ethereum (ETH) has found significant support at $1,380 following a market crash precipitated by Trump’s tariff announcement. This support level has resulted in a temporary rebound in price. Recent improvements in market sentiment are evidenced by the Fear and Greed Index rising from a historic low of 15 to 29, indicating a slight recovery in investor confidence.

Jerome Powell, Chairman of the Federal Reserve, is scheduled to address the Economic Club of Chicago today. His speech is crucial, as it marks his second public appearance since the recent tariff announcement. Market participants are likely to closely analyse his comments regarding interest rates and economic conditions, as these factors could lead to increased market volatility during trading.

Despite ETH’s recent uptick, its annual performance remains poor, with a decline exceeding 50% in 2025. The cryptocurrency market, in general, has struggled amid adverse macroeconomic conditions, compounded by Ethereum’s inability to compete effectively against rivals like Solana (SOL) and Sui (SUI), which are offering developers lower fees and quicker transaction times.

The impending Pectra upgrade is expected to significantly impact Ethereum’s network performance, yet critics argue that it does not adequately address fundamental issues hindering Ethereum’s dominance in the smart contracts domain. Nonetheless, Ethereum retains the largest DeFi ecosystem, with a total value locked (TVL) of $46.8 billion, significantly outpacing its nearest competitors, Solana and BNB Chain, which have TVLs of $6.8 billion and $5.2 billion respectively.

Following a recent downturn, ETH’s price has fallen to its lowest point in nearly two years. Historical trends indicate that after the Relative Strength Index (RSI) hits oversold levels, the price often undergoes a period of consolidation before making subsequent moves. However, unlike previous occurrences, Ethereum has established a lower low this time, indicating a potential shift towards a continued downtrend rather than recovery.

During consolidation periods, market participants assess recent developments, often leading to a more cautious approach toward the asset’s price trajectory. The second-highest point of control (POC) for ETH’s yearly trading volumes is identified at the $1,900 level. If the price approaches this level within weeks, it may test market interest; however, failure to breach this could push ETH lower, raising the possibility of touching $1,000.

Conversely, if bullish momentum drives the price beyond $2,000, Ethereum might have a favourable chance to reach the current POC at $2,700. Current macroeconomic conditions and overall market sentiment appear bearish, although low selling volumes at $1,300 suggest that ETH may have found a temporary local bottom. Following price patterns previously observed, it is plausible that ETH could trade within a range of $1,300 to $1,700 in the coming months before making a decisive next move.