- Ethereum could stutter around the $1,500-$1,650 region before continuing its descent toward $1,275.
- The buyers have little strength right now, according to the OBV.
Ethereum [ETH] was still in a long-term downtrend. The recent price bounce above the $1,550 level and ETH’s subsequent attempt to flip the level bullish looks like it will fail.
The selling pressure in the ETH market was incessant, and bulls would likely suffer more losses soon.
The U.S. SEC pushed its decision on ETH ETF staking and in-kind redemption to June 2025. Combined with ETH whales offloading their hoard and the rise of AI as a threat to decentralization, the sentiment behind Ethereum did not appear hopeful at all.
Ethereum to witness short-term volatility before continuing the downtrend
Source: ETH/USDT on TradingView
On the 9th of April, ETH saw a 20.5% bounce from $1,385 to $1,670. Over the past week, the bulls have worked hard to keep the price above the $1,550 horizontal level.
This level had been a key support level during the recovery from the bear market in 2023.
Ethereum was likely to fall below this level once again. Its price trend has been bearish since January, characterized by a series of lower highs and lower lows. The most recent lower high was at $1,957, set in early April.
The bulls need to drive prices above this level to flip the bearish market structure bullishly. But such a move appeared highly unlikely anytime soon.
The OBV was in a steady downtrend alongside the price, showing persistent selling pressure. The RSI was below neutral 50 to indicate bearish momentum was dominant.
Source: Coinglass
The liquidation map showed that liquidation levels below the price were both closer and larger than those above. This suggests that ETH is likely to drop toward these magnetic zones in the short term.
High-leverage liquidation levels between $1,515 and $1,575 create downward pressure, pulling ETH toward these points.
Once liquidity at these levels is absorbed, a potential rebound toward $1,650-$1,700 could follow.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
