Ethereum is heading towards another correction as the risk of sell-off increases: What will happen to ETH price next?

After the statements made by Federal Reserve Chairman (Fed) Jerome Powell, the price of Ethereum is facing a significant challenge as it cannot confirm a clear upward trend. On April 16, during a speech in Chicago, Powell asserted that the Fed would not rush to cut interest rates, emphasizing a cautious "wait and see" strategy based on upcoming economic data. This announcement has led to an increase in capital flows into Ethereum exchanges, signaling a high possibility of a bearish adjustment.

Ethereum faces increasing bearish challenges

The price of Ethereum is showing a bearish trend, influenced by the Fed's cautious economic outlook, which has dampened investor sentiment. According to data from Coinglass, Ethereum has seen about 40.6 million USD liquidated in the past 24 hours, with Long positions accounting for around 26 million USD and Short positions accounting for about 14.6 million USD.

The recent price fall coincides with a sudden increase in exchange reserves. Just the day before, over 77,000 ETH were transferred to derivative exchanges, marking the largest net inflow in a single day in several months. This sudden increase in supply raises the likelihood of selling pressure.

However, data from Bitcoin Magazine shows that the Netflow index remains negative, at around -6,800 ETH, indicating that the total amount of money flowing out has exceeded the amount flowing in, implying that many investors are accumulating Ethereum in the context of a bearish market.

Coinglass also revealed that the open interest (OI) for Ethereum is increasing despite bearish pressure. The OI index has risen by over 3.87%, reaching over 18 billion USD. However, the funding rate is trending around the negative region at 0.0015%, indicating that the bears are still in control to strengthen ETH with immediate Fib support levels.

However, the current bearish period may soon turn into a strong rebound. According to an analyst from CryptoQuant, Ethereum is trading close to its intrinsic value, a level that often signals significant rebounds in the past. The intrinsic value, currently around 1,585 USD, is considered a strong buy point at high value.

Next ETH Price Prediction

The effort to recover the price of Ether is losing momentum around the EMA trend lines as the bears strongly defend the EMA20 level. As a result, the price is oscillating around the bearish resistance line. Currently, the price of ETH is trading at 1,588 USD, falling more than 1.5% in the past 24 hours.

If the seller can push the price down below 1,400 USD, this could trigger a deeper bearish trend towards the end of the bearish channel at 1,130 USD. This level is expected to attract buying interest, but if the bearish momentum remains strong, a further fall to 1,000 USD could occur.

On the contrary, a breakout and decisive close above 1,700 USD would be the first sign that buyers are regaining control. Such a move could pave the way for a bullish run to 2,000 USD. Although the 50-day SMA may slow down the recovery process, it could be broken if bullish momentum builds. A strong push above 2,000 USD would indicate that the bearish trend may be reversing.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

Mr. Giáo