Ethereum has been under significant bearish pressure for the past few months, with prices dropping from around $4,100 to the present level of $1,607, this represents a decrease of around 62% in price. The altcoin was up by 9.8% over the past 24 hours. This rally came after President Trump announced a 90-day pause on reciprocal tariffs.
Even after this rally ETH is stuck inside the descending channel. Will it break above the immediate resistance of $1,809 or a break down to $1,100 is about to happen?
Ethereum Price Analysis: Is a Technical Bounce Coming?
ETH is currently trying to establish a support level near $1,550 after being severely sold off in late March and in the first week of April. The emergence of a relatively big green candle, implying buy interest at current levels on the 9th of April, has little volume suggesting a major immediate reversal.
All key EMAs are stacked bearishly above the current price, with the 50 EMA acting as resistance near $2,000. The given distance between the current price and the EMAs indicates how strong the ongoing downtrend is, with no bullish crossover insight.
The RSI is about 37.17, nearing the oversold zone but not yet in extreme territory. This situation suggests the probability of a technical bounce. The RSI had been in a downtrend since December and had failed to show any positive divergences.
ETH is currently stuck in a descending channel. The price has recently approached the lower trendline of the channel, suggesting a support test. This typically continues until a decisive breakout occurs.
Some of the important resistance levels are $1,785, $2,000 (psychological level), and $2,385 . The downside immediate support lies at $1,539 with the major psychological at $1,500. The last bounce happened from the lower boundary of the channel, indicating that this level is being defended by buyers aggressively.
ETH Price Targets
If ETH breaks below the lower boundary of the channel, then the immediate target would be $1,400, which is a 13.5% decline from its current levels.
On the upside, a decisive break above the channel’s upper boundary could see ETH testing the 50-day EMA near $2,000, which would require a 23.7% rally.
For a true trend reversal, Ethereum would need to break out of the descending channel with significant volume, reclaim the $2,000 level, and see the RSI establish itself above 50. Until then, the bearish pressure will continue to dominate the second-largest cryptocurrency.
Spot Ethereum ETF flows remain weak
According to SoSoValue data, on 9th April, the total net outflow of Ethereum spot ETFs was $11.18 million, and none of the nine ETFs had a net inflow. The Ethereum spot ETF with the largest net outflow in a single day yesterday was Fidelity ETF FETH, with a single day net outflow of $5.73 million. Currently, the total net inflow of FETH in history has reached $1.40 billion.
It has recorded $94.1 million in outflows over the last two weeks against $13 million in inflows.
Whale Activity
An Ethereum OG dumped 10,702 ETH ($16.86) at $1,576 again after 2 years of dormancy, He bought when the price was just $8. Interestingly, he never sold when ETH was above $4000 but always chose to sell during major dips.
Ethereum Witnesses Low Open Interest and Negative Funding Rates
Lack of enthusiasm in the derivatives market is another factor for ETH’s price decline. The total number of futures and options contracts remains low, indicating reduced trader participation.
Currently, at $16.7 billion, Open Interest is 48% below the peak of $32.3 billion witnessed on Jan 24. Declining OI signals a slack in confidence and interest from the investors.
Also Read: Will Bulls Boost Ethereum Price Back To $2,000 Within Parallel Channel?
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