The Ethereum market faces significant challenges, as recent trends suggest that its long-term downtrend is likely to continue. Market indices suggest that Ethereum may struggle to maintain momentum above critical support levels, especially as selling pressure mounts.
As a recent report by COINOTAG explained, “Caution prevails among traders, as the Ethereum network faces pressing economic hurdles”.
This article examines the recent trends of the Ethereum (ETH) market, examining potential short-term volatility and ongoing selling pressures.
Ethereum faces growing selling pressure amid market turmoil
Ethereum (ETH) is currently going through turbulent conditions, with the market increasingly heading towards pessimism. The recent rebound above the $1550 level looked promising, but fundamental trends paint a bleak picture. Analysts note persistent bearish patterns that have characterized Ethereum’s march since January 2025, reflected in the continued decline in the highs and lows.
Current market conditions and bearish trend indicators
The situation is exacerbated by the difficulty of Ethereum breaking through the USD$1,650 resistance level. With the Balanced Volume (OBV) indicator pointing to a steady downtrend, the signs of continued selling pressure are discouraging. Traders are also keeping a close eye on the Relative Strength Index (RSI). which is currently below the neutral 50 level, indicating the continuation of the bearish momentum. In light of these indicators, Ethereum’s ability to stabilize appears increasingly at risk.
Challenges Ahead: Impact of Regulatory Decisions
Another layer of complexity arises from regulatory developments. The US Securities and Exchange Commission’s (SEC) decision to postpone its ruling on the deposit and redemption of shares in kind in Ethereum ETFs until June 2025 has raised eyebrows across the ecosystem. Many investors are wondering about the implications of this extended timeframe on market liquidity and investment attractiveness, which could contribute to the downturn surrounding Ethereum.
Whales sell, Ethereum under liquidation pressure
After a slight rally, markets rebounded on bearish effects, with Bitcoin plunging to around $83,000. Despite this, the price of Ethereum remains strong above $1,500, defending the support level, suggesting fast boom days are approaching. At the same time, the price of Ethereum in the short term is witnessing a significant decline, falling by more than 3% in the past 24 hours. Moreover, optimists and whales expressed their distrust in the currency, raising concerns about the upcoming price movement.
The Bitcoin and Ethereum Spot ETF has seen continuous outflows for over a week. While Bitcoin recorded an inflow of over 900 BTC, the Ethereum Spot ETF still faces outflows of over 8,750 Ethereum. This points to a significant shift in cryptocurrency trends, which seems to have affected whales as well. In the latest development, the giant whales sold ETH, raising significant concerns about the next price movement.
At the same time, the actions of large holders, or “whales,” have increased market volatility. Recent reports show a significant sale of Ethereum by major holders, contributing to oversupply and downward pressure on prices. Given the general market dynamics, many in the cryptocurrency community are questioning Ethereum’s long-term viability in light of the increasing competition from other blockchain technologies, especially with the rise of artificial intelligence as a perceived threat to decentralization.
Technical Analysis: Liquidation Levels and Future Price Movements
Looking at the technical charts, Ethereum has a critical support zone of between $1,500 and $1,650, which has proven to be a point of struggle for buyers. According to the thermal filtering map, levels below the current price show a noticeable concentration of filtering processes, indicating significant downward pressure. High leveraged liquidation levels between $1,515 and $1,575 could push Ethereum towards a cascading effect of further declines, if the downtrend continues.
Ethereum under pressure: risk of breaking the $1550 support
Ethereum [ETH] remains in a long-term downtrend. The recent price rebound above $1,550, and Ethereum’s subsequent attempt to flip the price to an upside, looks set to fail.
Selling pressure in the Ethereum market has continued, and optimists are likely to incur more losses soon.
The U.S. Securities and Exchange Commission has postponed its decision on depositing and redeeming in-kind funds in Ethereum exchange-traded funds (ETH) to June 2025. With Ethereum whales giving up their wealth, and the rise of artificial intelligence as a threat to decentralization, the sentiment behind Ethereum has never been positive.
On April 9, Ethereum saw a 20.5% rise from $1,385 to $1,670. Over the past week, optimists have worked hard to keep the price above the horizontal level of $1,550.
This level was a key support level during the recovery from the bear market in 2023.
The price of ETH was likely to fall below this level again. Its price has been trending bearish since January, marked by a series of lows and highs. The last low peak was at $1,957, which was recorded in early April.
Optimists need to push prices above this level to flip the bearish market structure upwards. But such a move seems highly unlikely anytime soon.
The OBV was in a steady downtrend along with price, showing constant selling pressure. The RSI was below the neutral 50 level, suggesting bearish momentum dominance.
The filter map showed that the filter levels below the price were closer and larger than those above. This suggests that (ETH) is likely to fall towards these attractive areas in the short term.
High-leveraged liquidation levels between $1,515 and $1,575 are putting downward pressure, pushing Ethereum towards these points.
Once liquidity is absorbed at these levels, a potential rebound towards $1,650-1,700 could follow.
