The article discusses three key reasons Ethereum’s price may decline further despite a recent rise. The analysis highlights crucial support levels between $1,280 and $1,160, as well as macroeconomic factors contributing to a bearish outlook. The RSI indicates potential continued downside, with volatility expected from upcoming economic events.
Despite Bitcoin’s recent surge to nearly $85,000, Ethereum’s trajectory appears less optimistic, leading some experts to believe further declines are possible. Following an 18% increase after hitting its recent low, Ethereum’s price has returned to the $1,630 mark, a significant trading threshold since February 2021. The challenge now for Ethereum bulls is to establish this level as a support base; failing to do so may lead to continued downward momentum.
The next crucial support zone for Ethereum lies between $1,280 and $1,160, having previously absorbed selling pressure effectively last December 2022, leading to a 40% price increase shortly afterwards. Should ETH revisit this range, market dynamics may encourage a similar rally, but its potential must be carefully monitored, given the looming oversold RSI, which has historically heralded more substantial upward shifts for Ethereum.
Another key support region extends from $890 to $715, identified as a significant buying imbalance propelling Ethereum nearly 50% higher in previous sessions. Under current RSI trends, if Ethereum doesn’t stabilise promptly, a price drop into this zone could occur sooner than anticipated, raising alarm among traders.
Macroeconomic factors, particularly the trade tensions between the US and China, have compounded uncertainty in the crypto market, contributing to a bearish outlook for Ethereum amidst recession fears. The anticipated speeches by Fed Chair Powell and the March inflation data release are poised to further influence market volatility, potentially exacerbating Ethereum’s price fluctuations and sustaining its neutral to bearish sentiment overall.
Readers are encouraged to remain informed and cautious in their trading activities, utilising resources such as Pintu Academy for education on crypto markets. Engaging with Pintu’s tools is recommended for a secure trading experience and informed decision-making regarding cryptocurrency investments.
