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Ethereum (ETH) price has recorded a 5.3% rise over the last 24 hours. There’s a possibility of reversal after a prolonged downtrend. The downtrend has resulted in ETH losing 46.8% of its value in the last year.
Ethereum’s monthly chart has been “brutal,” according to crypto analyst Dan Gambardello. As four red candles in a row push ETH holders to the edge.
The overall market for cryptocurrencies has also dipped 29% from its swing high. Gambardello calls the correction “normal” but “volatile, annoying, and not fun.” The analyst refers to similar corrections in earlier cycles of the market, adding that this dip has been “very prolonged” and “grueling” compared to earlier declines.
Technical outlook for Ethereum (ETH) Price
The weekly chart of Ethereum has an RSI (Relative Strength Index) value of about 33, which indicates that it is heading towards the oversold region.
As Gambardello explains, this level is significant historically as it reflects the RSI levels experienced at the bottom of previous bear markets. Although not yet technically oversold, the reading places Ethereum in a position that might indicate a trend reversal.
On the daily chart, Ethereum is forming a bullish divergence on the RSI indicator. This technical pattern occurs when price makes a lower low while the RSI makes a higher low.
For Ethereum to confirm a short-term reversal, Gambardello identifies $1,950 as a critical resistance level that needs to be broken “with some good power.” Beyond this immediate hurdle lies the 50-day moving average in the $2,200-$2,300 range.
The analyst also points to a potential pullback target of $2,400-$2,800. However, he cautions that further downside to test bear market lows between $1,000 and $1,500 remains “really in play.”
Ethereum’s price action across macroeconomic conditions
ETH’s current price action has happened against a backdrop of changing macroeconomic conditions that could influence cryptocurrency markets in the coming months.
Gambardello highlights what he calls “the pivot” that is visible on Ethereum’s chart. He also pointed to similarities with previous cycle bottoms that formed as quantitative tightening (QT) policies were showing signs of ending.
Gambardello explains,
“I’m not saying QT is coming to an end now, but we’re getting the beginning signs of quantitative tightening coming to an end.”
The analyst is pointing out that the current week will most likely be highly volatile for crypto markets because of some major economic events. These include Jerome Powell on Friday, the jobs data release, and possibly tariff news on Wednesday. All these may induce price fluctuations in risk-on assets such as cryptocurrencies.
From a timing perspective, Gambardello notes that now that it’s April, the market is positioned more similarly to previous cycle bottoms than to the beginnings of bear markets. This timing alignment adds weight to the possibility that Ethereum could be approaching a significant turning point even if further downside occurs first.
Will Ethereum reclaim $2,000 soon?
For investors and traders observing ETH price movement, Gambardello cited a number of important levels to watch in the coming days and weeks.
The first is the $1,950 resistance level, which ETH must break through convincingly to validate a change in short-term momentum.
After that level, the next target is the 50-day moving average around $2,200-$2,300.
If Ethereum manages to hit this area, it would then be on its way to what Gambardello refers to as the “pullback range” of $2,400 to $2,800. This aligns with the 200-day moving average and a significant trendline.
But the analyst warns that the journey ahead will be difficult and warned to “be prepared for a volatile journey.” He says further drawdowns are likely because the market responds to future economic announcements and policy actions.
