Ethereum price retreated on Wednesday, breaking a two-day winning streak as resistance persists at the $1,900 mark. The decline by ETH was a reflection of the happenings in the broader crypto market which is under pressure as US reciprocal tariffs enter into force. Cryptocurrencies have borne the brunt of risk aversion in financial markets, with ETH price losing 25% in the last month.
However, Ethereum’s troubles are asset-specific to a significant extent. ETH price has declined by a disproportionately bigger margin. For example, while ETH is down by 43% year-to-date, its altcoin peer BNB Coin is at -14%, Solana is down by 33%, ADA is at -19% and XRP is up by 2.2%.
Furthermore, Coinglass data shows that Ethereum’s Futures Open Interest (OI) dropped to $20.68 billion on April 1 from all-time highs of $32.27 billion recorded on January 24,2024. That signals declining investor confidence in the medium and long-term performance of the asset, which will add downward pressure on Ethereum price. In addition, Ethereum spot ETF recorded $3.6 million in net outflows on April 1, interrupting the successive gains recorded in the previous two sessions.
On the positive side, Ethereum’s Market Value to Realized Value (MVRV) ratio has crossed below the 1 threshold as per IntoTheBlock data. As seen on the chart below the reading at 0.88, ETH is in an undervalued asset, offering good buying opportunities. Therefore, being in this zone could trigger an accumulation, leading to a price recovery.
Ethereum Price Prediction
Ethereum price pivots at $1,895 and resistance at that level will keep the momentum to the downside. The coin will likely find its initial support at $1,865. A stronger downward momentum will break below that level and open the pathway to test $1,840.
On the other hand, the momentum could shift to the downside if the price breaks above $1,895. With the buyers in control, ETHUSD will likely go higher and meet resistance at $1,912. A stronger upward momentum will break above that level and invalidate the downside narrative. That could also see the price head higher to test $1,937.
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