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

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Ethereum surprised the market with a powerful bounce on Wednesday, surging more than 21% from its recent low of $1,380. The move came shortly after US President Donald Trump announced a 90-day pause on reciprocal tariffs for all countries except China, which now faces a 145% tariff. This development injected optimism into global markets, triggering a broad recovery across risk assets — with ETH among the top beneficiaries.

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Despite the relief rally, Ethereum still trades below critical technical levels, and the broader price structure suggests ongoing consolidation rather than a confirmed reversal. Analysts remain cautious, as the asset’s inability to reclaim the $1,800–$2,000 range keeps the long-term trend in question.

However, on-chain data from CryptoQuant adds an intriguing layer to the current outlook. Ethereum’s price is still trading below its realized price — the average price at which all ETH in circulation last moved. Historically, this scenario has represented a high-probability accumulation zone, often appearing once per cycle.

According to some analysts, this could present a rare buying opportunity for contrarian investors willing to look beyond short-term volatility and macro uncertainty. As Ethereum continues to consolidate, all eyes are on whether bulls can build on this momentum.

Ethereum Faces Critical Test Amid Volatility And Trade Tensions

Ethereum is at a pivotal point after enduring weeks of relentless selling pressure and extreme volatility. The broader market has been shaken by macroeconomic uncertainty and escalating global trade tensions, with US tariffs under Trump’s administration continuing to rattle investor confidence. The crypto market, particularly altcoins like Ethereum, has taken the brunt of this instability. ETH has lost over 60% of its value since late December, raising fears of a prolonged bear market.

However, a shift may be unfolding. Bulls are beginning to reappear, with Ethereum bouncing and setting a strong support above $1,400. This recovery follows aggressive price swings not only in crypto but also in global equities, which have seen significant rebounds following the announcement of a 90-day pause on reciprocal tariffs for all countries except China.

Still, Ethereum remains below crucial resistance levels, especially the $2,000 mark — a level that represents more than just a psychological barrier. According to top analyst Quinten Francois, ETH is currently trading under its realized price, which averages the cost basis of all coins in circulation.

Historically, such conditions have presented rare buying opportunities. Francois suggests this might be a once-in-a-cycle — or even once-in-a-lifetime — chance for long-term investors to accumulate ETH at undervalued levels. The coming days will determine whether bulls can reclaim key resistance and shift sentiment toward a sustained recovery.

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Price Action Details: Key Levels To Reclaim

Ethereum is currently trading at $1,650 after failing to break above the $1,700 level, a psychological and technical barrier that continues to cap bullish momentum. Despite a sharp rebound earlier in the week, ETH remains stuck in a consolidation range and is struggling to find direction amid broader market uncertainty.

For bulls to regain control and initiate a stronger recovery, Ethereum must push above the $1,850 mark — a level aligned with the 4-hour 200-day moving average (MA) and exponential moving average (EMA). These indicators have acted as short-term resistance since ETH fell below the $2,000 mark in February and reclaiming them is critical for confirming a shift in trend.

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However, if Ethereum fails to break above $1,750 in the coming days, downside risk increases significantly. A rejection at current levels could trigger another wave of selling, potentially sending the price below the $1,500 support zone. This would put further pressure on bulls and undermine recent gains.

With market sentiment still fragile and macroeconomic uncertainty weighing on investor confidence, Ethereum remains at a crucial juncture where a decisive move above resistance is needed to shift the outlook from bearish to neutral.

Featured image from Dall-E, chart from TradingView