Uncovering three critical reasons why Ethereum's price may not have reached its bottom yet. Will ETH experience further declines or rebound amidst uncertain macroeconomic conditions?
Key Takeaways
- Ethereum's recent 18% rally may not be enough to confirm a market bottom.
- Three factors suggest potential ETH declines: key resistance levels, non-oversold RSI, and macroeconomic uncertainty.
- Crucial support levels to watch include $1,280–$1,160 and $890–$715.
3 Reasons Ethereum Price Could Continue Falling
While Ethereum (ETH) has shown an 18% rebound from recent weekly lows, this doesn't necessarily indicate a market bottom. Here are three compelling reasons why ETH might face further downward pressure.
Reason 1: Weekly Chart Shows Critical Resistance Level
TradingView's weekly chart reveals ETH struggling to reclaim $1,630—a significant volume level since February 2021. This resistance-turned-support level remains crucial:
- The $1,280 intermediate demand zone could absorb selling pressure
- Historical precedent shows ETH surged 40%+ after December 2022's $1,280–$1,160 movement
- Absolute critical support lies between $890–$715 where weekly buyer imbalance occurs
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Reason 2: RSI Not Yet Oversold
The weekly Relative Strength Index (RSI) hasn't reached oversold territory—a condition that historically preceded all major ETH rallies. This technical indicator suggests:
- Potential for further declines toward $1,280–$1,160 range
- Possible eventual testing of $890–$715 support zone
Reason 3: Macroeconomic Uncertainty Prevails
Current macroeconomic conditions contribute to ETH's bearish outlook:
- Trade wars amplify volatility across traditional and crypto markets
- Fed Chair Powell's upcoming speech may trigger additional market movements
- March inflation data release could create further instability
FAQ Section
Q: Is now a good time to buy Ethereum?
A: With multiple indicators suggesting potential further declines, cautious investors might wait for clearer technical confirmation of a bottom.
Q: What's the worst-case scenario for ETH price?
A: If critical supports fail, ETH could test the $890–$715 range—a 40–50% decline from current levels.
Q: How does Bitcoin's performance affect Ethereum?
A: BTC typically leads crypto market trends. Bitcoin breaking key supports often precedes similar movements in altcoins like ETH.
Q: What positive catalysts could reverse ETH's trend?
A: Successful resistance breakouts, oversold RSI conditions, or positive macroeconomic developments could spark rebounds.
Strategic Considerations for ETH Investors
Given the current technical and fundamental landscape:
- Monitor the $1,630 resistance level closely
- Watch RSI for potential oversold conditions
- Stay informed about macroeconomic developments
- Consider dollar-cost averaging during volatility
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Disclaimer: This analysis represents market observations, not financial advice. Always conduct your own research before making investment decisions.