- Ethereum has bounced above $1,600 after dipping below $1,500, but technical indicators and on-chain sentiment remain bearish.
- Unless ETH reclaims key resistance levels like $1,700 and $1,900, further downside toward $1,400 is likely.
Ethereum Price Struggles to Find Its Footing
Ethereum (ETH) has kicked off the week with a slight bounce, rising above the $1,600 mark after plunging below $1,500 last week. While this minor recovery brings short-term relief, the broader technical and on-chain indicators paint a picture of ongoing weakness. The key question now: can ETH build on this bounce or is another leg down on the horizon?
Technical Indicators Still Flash Red
On the daily chart, Ethereum’s price action remains entrenched in a bearish structure. Trading well below its 200-day moving average near $2,800, ETH has continued to post lower highs and lower lows, a classic downtrend formation. The current support zone around $1,550 is holding — but just barely. If this level fails, the next major demand zone lies between $1,300 and $1,400.
The RSI (Relative Strength Index) continues to hover just above oversold territory, with no clear bullish divergence to suggest a strong reversal is imminent. Unless Ethereum reclaims the $1,900 level, the broader bearish trend remains intact.
On the 4-hour chart, ETH recently bounced off the $1,550 support and is now testing the $1,650–$1,700 resistance range, which aligns with a descending trendline that’s capped every attempt at a rally for over a month. A clean breakout above $1,700 could spark a move toward $1,800 — but until then, sellers remain in control.
Bearish Sentiment Persists On-Chain
Sentiment indicators aren’t offering much optimism either. The Taker Buy-Sell Ratio for ETH remains below 1, showing that sell orders still dominate. Although there’s been a slight uptick recently, the overall bearish bias persists. This lack of buyer aggression suggests the recent bounce might not have the strength to turn into a sustainable rally.
A Fragile Bounce in a Bearish Storm
Ethereum’s current rebound may offer a glimmer of hope, but without stronger momentum and a decisive reclaim of resistance levels, the risk of further downside looms large. Traders and investors should keep a close eye on the $1,550 support and $1,700 resistance — as the next big move could be just around the corner.
