Ethereum has been facing a significant downtrend, with the price hovering between $1,500-$1,650 and potentially dropping further towards $1,275. The lack of buyer strength, as indicated by the OBV, suggests that the selling pressure in the ETH market is relentless. The recent bounce above $1,550 has not been able to sustain a bullish momentum, with bulls likely to experience more losses in the near future. The delay by the U.S. SEC in making a decision on the ETH ETF staking and in-kind redemption until June 2025, along with ETH whales selling off their holdings and the rise of AI as a threat to decentralization, paints a bleak picture for Ethereum’s sentiment.
On April 9th, ETH witnessed a bounce of 20.5% from $1,385 to $1,670, with bulls struggling to keep the price above the $1,550 support level. However, the overall price trend has been bearish since January, marked by lower highs and lower lows. The OBV and RSI indicate a persistent selling pressure and bearish momentum in the market, with ETH likely to fall below the $1,550 level once again. The liquidation map shows that there is downward pressure on ETH, with liquidation levels between $1,515 and $1,575 leading to a potential drop towards these zones in the short term.
In order to reverse the bearish market structure, bulls would need to drive prices above the $1,957 level, set in early April. However, this scenario seems unlikely at the moment, given the prevailing selling pressure and bearish sentiment surrounding Ethereum. Once liquidity at lower levels is absorbed, there could be a potential rebound towards $1,650-$1,700. It is important to note that the information provided does not constitute financial advice and is solely the opinion of the writer.
Overall, Ethereum is facing challenges in maintaining its price levels, with a downward trend expected in the short term. The lack of buyer strength, relentless selling pressure, and external factors such as SEC delays and whales selling off their holdings contribute to a bearish sentiment around Ethereum. Traders should be cautious and monitor the market closely for potential price movements and volatility in the coming days.
