Ethereum bulls have taken another hit as ETH’s price slipped below $1,800, marking a 14% weekly decline and one of the worst-performing quarters in the cryptocurrency’s history. The broader market downturn has intensified selling pressure, leaving investors wondering whether Ethereum can stage a comeback soon.
Is Ethereum Oversold? RSI Suggests a Potential Bounce
Despite the bearish sentiment, Ethereum’s Relative Strength Index (RSI) has dropped to 20, its lowest level since early February. The RSI is a key momentum indicator, and readings below 30 suggest that an asset is oversold and due for a potential reversal.
Historically, when ETH’s RSI falls to such extreme levels, a price recovery often follows. This has given some traders reason to believe that a relief bounce could be around the corner.
Exchange Outflows Hint at Reduced Selling Pressure
Another bullish signal comes from Ethereum’s exchange netflow. Over the past week, more ETH has been withdrawn from exchanges than deposited, suggesting that investors are moving their holdings into self-custody instead of selling.
This trend typically reduces immediate selling pressure and indicates that large holders may be preparing for a long-term accumulation phase rather than a continued selloff.
Ethereum Price Predictions: Where Next?
Ethereum’s poor performance in Q1 2025 has left many investors disappointed. At the start of the year, ETH traded above $3,300, meaning its current level represents a 45% decline from its January high.
However, some analysts remain optimistic about a recovery:
- Crypto General believes ETH can regain bullish momentum if it reclaims the $2,000 level.
- The analyst also suggests that a failure to hold $1,800 could lead to a further breakdown to $1,500.
- Michael van de Poppe compared ETH’s weak performance to gold’s impressive quarter but hinted that the upcoming Trump tariffs on April 2 could introduce volatility into the market.
Interestingly, van de Poppe speculated that a “Sell the rumor, Buy the news” scenario could play out. This suggests that investors may have sold in anticipation of negative economic news, but if the market reaction is less severe than expected, a rebound could follow.
Will Ethereum Recover?
For now, Ethereum is at a critical juncture, and its next move will depend on whether it can hold the $1,800 support or reclaim $2,000. With RSI signaling oversold conditions and exchange outflows reducing selling pressure, a short-term rebound remains possible. However, if ETH fails to stabilize, a drop to $1,500 could be the next stop.
