Ethereum might be on track to facing renewed pressure, according to an interesting technical outlook. Despite short bursts of recovery attempts, the broader market structure is still trying to flip in favor of bulls, but price movement shows that the bears are still in control. Notably, a recent technical analysis posted by crypto analyst Youriverse on the TradingView platform highlights a potential sharp drop in the price of Ethereum towards $1,400 if the current downward trend continues.

Strong Rejection From Key Fibonacci Zone Hints At Persistent Resistance

Technical analysis shows that the Ethereum price chart is currently characterized by a noticeable Fair Value Gap (FVG) on the 4-hour timeframe. This interesting gap was left behind after a steep 10% drop last Sunday, marking a strong area of seller dominance.

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This gap represents a zone of clear imbalance where selling activity outweighs buying pressure and has influenced Ethereum’s price action throughout the past seven days. Earlier last week, Ethereum retraced into this gap, reaching the midpoint, but was met with swift rejection. This swift rejection showed the intense selling pressure present within this Fair Value Gap. 

Interestingly, the Ethereum price has returned to this Fair Value Gap again, and another rejection here could send it back to a bottom below $1,400. Furthermore, Ethereum is trading within an area identified as the “golden pocket” of the Fibonacci extension indicator, which is drawn from the $1,383 bottom on April 9. Unless price action breaks decisively above this level and heads toward the next Fib level of 0.786 at $1,724, there is still a risk of a significant rejection that could lead to further downside below $1,400.

Stochastic RSI Weakness Suggests Possible Downturn Ahead For Ethereum

In addition to the Fair Value Gap and Ethereum’s struggle within the golden pocket of the Fibonacci retracement zone, the Stochastic RSI is now introducing another layer of bearish pressure to the current outlook. This momentum oscillator, which measures the relative strength of recent price movements, is approaching the overbought region on the daily timeframe. 

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Ethereum’s approach of overbought zone with the Stochastic RSI is due to inflows that have pushed the crypto’s price from the $1,383 bottom on April 9. Now that the Stochastic RSI is moving into the overbought zone, it adds to the bearish outlook that it could reject at the Fair Value Gap and start a new downside correction very soon. 

So far, the Ethereum price was rejected at $1,650 in the past 24 hours, which further supports the bearish continuation thesis. If the selling pressure builds again, as suggested by both the weakening RSI and persistent resistance at the Fair Value Gap, the analyst warns of a breakdown that could drag the price to as low as $1,400, or even lower.

At the time of writing, Ethereum is trading at $1,627.

Featured image from Unsplash, chart from Tradingview.com

Ethereum (ETH) seems to be turning around its bad luck as it has rallied 18% from the previous weekly low. Does this mean Ethereum price has bottomed? Here are three reason why ETH could drop lower.

3 Reasons Why Ethereum Price Could Continue its Descent

Ethereum price has tagged the 2018 ATH of $1,385, which has many believing that this could be the bottom. However, there are three critical reasons why a further crash could be possible for ETH.

Reason 1: Weekly Price Chart Shows Key Resistance Level

The 1-week TradingView chart shows that Ethereum price is revisiting $1,630, which is the highest volume traded level since February 2021. Since the recent crash pushed ETH below it, it is upon bulls to flip this hurdle into a support floor. As long as this resistance level stands, there is a good chance ETH’s value will continue to depreciate. 

Moreover, the intermediate demand zone at $1,280 is the next Ethereum price support floor that could absorb selling pressure. After this area from, $1,280 to $1,160, was fromed in December 2022, the price of ETH shot up more than 40% in the next three to four weeks without any pullbacks. Hence, a revisit of this zone is also likely.

The absolute key support or demand zone extends from $890 to $715, which is a weekly buy-side imbalance that led to near 50% weekly candlestick. 

Reason 2: RSI Yet to be Oversold

On the weekly chart, the Relative Strength Index (RSI) has not yet hit oversold territory. All the major rallies for Ethereum price have begun after RSI tagged an oversold level. Hence, the chances of a further drop are likely for ETH, potentially into the $1,280 to $1,160 and $890 to $715 zones.

Reason 3: Uncertain Macroeconomic Conditions

From a macroeconomic perspective, the Trump and Xi trade war between the US & China has caused additional volatility in the stock and crypto markets. This has left Ethereum price prediction bearish due to fears of recession.

Additionally, this week has two major events: Fed Chair Powell’s speech and the March inflation announcement. The outcome of both critical news events could induce additional volatility that could kickstart a messy collapse.

So, overall, the outlook for Ethereum price remains neutral-to-bearish. However investors need to be more cautious ahead of the upcoming events amid Trump-Xi trade war.

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Akash Girimath

Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.

A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.

Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.