Ethereum (ETH), alongside Bitcoin and various altcoins, has found itself caught in a recent wave of market turbulence, dipping sharply below the critical $1,600 mark after a significant 15% decline. This sudden downturn has rattled investors, largely due to renewed macroeconomic concerns. The latest wave of trade tensions, fueled by aggressive tariff announcements from President Donald Trump, compounded by unexpected geopolitical developments, has left both traditional and crypto markets on edge.
ETH Price Outlook: Will It Hold?
Ethereum now faces a critical test in the form of a well-established support zone, ranging from $1,520 to $1,540. This zone proved vital in both early and late 2023, acting as a stronghold for ETH during previous market downturns. However, with the recent volatility, this support is under pressure. Should ETH fail to maintain above this range, the next key downside target could be around $1,400, a level that could spark further sell-offs.
The situation worsened when Ethereum broke below the $1,870 to $1,880 range—a key Fibonacci level that had previously provided significant support. This breach has triggered a bearish sentiment among analysts, who are now forecasting a further dip toward the $1,520–$1,540 zone, which is unfolding as predicted.
RSI Indicates Oversold Conditions
The Relative Strength Index (RSI) has now entered oversold territory, suggesting that a short-term bounce might be possible. However, history shows that such signals don’t always mark the market bottom. For example, in March, despite an oversold RSI, Ethereum saw a brief recovery before continuing its decline.
Whale Activity Raises Concerns
Adding to the bearish sentiment, Ethereum whales have been actively offloading their holdings. Over the weekend, an Ethereum whale faced a devastating $106 million liquidation on Maker, involving 67,570 ETH. Furthermore, Lookonchain revealed that a panic-selling investor dumped 14,014 ETH—worth roughly $22 million—in one evening, amplifying the fear gripping the crypto market.
As $ETH plummeted, the 67,570 $ETH($106M) held by this whale on #Maker was liquidated!https://t.co/kXSkKh1H0P pic.twitter.com/IDjzbQ8P3z
— Lookonchain (@lookonchain) April 7, 2025
As Ethereum struggles to regain its footing, investors remain on edge, watching closely for any signs of a reversal in market sentiment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: ETH Bloodbath: $106M Liquidation Hits Ethereum Whale on Sky Protocol
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
