Ethereum price has broken below the psychological $1,500 support level, underlining the strong bearish hold. The coin inched up by 0.8% and traded at $1,484 at the time of writing, with the price having bounced back from two-year lows of $1,472. ETH is down by 55.4% year-to-date, and formed a death cross in late February when its 50 MA crossed below the 200-day MA.
The crypto market has been on a steep decline in the last six weeks, with risk-off sentiment prevailing in decision making by institutional and whale investors. ETH ETFs reported $389 worth of net outflows in March. In addition, DeFiLlama reports that Ethereum chain’s DEX volume reduced from $86.113 billion in January to $64.68 billion in March. Also, the number of daily unique traders has dropped by more than 50% from a peak of about 95,000 in late 2024 to roughly 40,000 as of today. These trends show reduced utility for ETH, adding downward pressure on the coin.
Blockchain monthly DEX Volume. Source: DeFiLlama
In addition, Ethereum chain’s DeFi TVL has declined by 10.94% to $44.37 billion in the last month, as reported by DeFiLlama. On a positive note, Ethereum’s trading volume declined by 15.8% in the last 24 hours, signaling declining selling pressure. That could help ETH price build traction and claw back to the $1,500 support level.
Ethereum Price Prediction
Ethereum price pivots at $1,500 and resistance at that level favours the sellers to stay in control. The coin will likely find its first support at $1,437. Breaking below that level will open the pathway for an extended decline to test $1,390.
Alternatively, going above $1,500 will signal a shift by the momentum to the upside. With the buyers in control, ETH price will head up and likely meet initial resistance at $1,576. Breaching that level will invalidate the downside narrative, and further control by the buyers could push the price higher to test $1,640.
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