Ethereum Price Forecast: Assessing the Bearish Trend and Key Support Levels

Ethereum’s price has plunged by over 60% to $1,645, continuing a downward trend influenced by negative investor sentiment. Technical analysis indicates a bearish market with critical support levels at $1,500 and $1,000, while external factors like the trade war may exacerbate volatility. Current indicators highlight a preference for Bitcoin, alongside substantial outflows from spot ETH ETFs.

Ethereum’s price has been on a significant decline, having dropped for two consecutive weeks and reaching a low of $1,645. This marks a decline of over 60% from its December peak of $4,098, reflecting a considerable loss in market value, equating to billions of dollars.

Technical analysis of Ethereum showcases a triple-top pattern formed at $4,098, a bearish indication consisting of three peaks and a neckline at $2,140. The current price movement has descended below this neckline, indicating the dominance of bearish market sentiment. Additionally, the price has breached the 61.8% Fibonacci Retracement level at $1,935, which is often seen as a critical support area where pullbacks typically occur.

Ethereum has also fallen beneath the 50-week and 100-week Exponential Moving Averages (EMA) while the Relative Strength Index (RSI) and Stochastic Oscillator signal a continued downward momentum. Furthermore, the Average Directional Index (ADX) has risen to 30, suggesting strengthening bearish trends.

The forecast for Ethereum points towards a potential breakdown with essential support levels observed at $1,500 and $1,000. A shift in this bearish sentiment could occur should the price manage to retest the crucial resistance level of $2,138.

Investor sentiment has grown increasingly negative, as indicated by the crypto fear and greed index, which has dropped to 27, entering the fear zone. The altcoin season index stands at 16, suggesting a preference for Bitcoin over other altcoins. Additionally, the stock market’s fear and greed index is at an extreme low of 4, contributing to further outflows from spot ETH ETFs last week, which amounted to nearly $50 million.

Looking ahead, macroeconomic factors, particularly the ongoing trade war, will likely influence Ethereum’s pricing dynamics. Current indications suggest the trade conflict may escalate, with Donald Trump’s tariff strategy remaining steadfast. Monitoring these developments will be critical for ETH’s short-term performance and investor confidence.