Ethereum Price Forecast: Reversal Ahead or Just a Bull Trap?

Ethereum Price Prediction: Can ETH Recover Momentum After Market Crash

The world cryptocurrency market is slowly recovering from the recent drama of the April 7 "Black Monday" crash. More than $1 billion worth of crypto assets were liquidated in one day as investors responded to a geopolitical shock—President Donald Trump's declaration of new tariffs. The panic that followed created a wave of selling that drove top assets such as Ethereum (ETH) to multi-year lows.

And while there is that, there's some good news. At this writing, the overall crypto market cap has increased to $2.53 trillion, up by a 3.08% increase over the past 24 hours. Ethereum has followed along with this surge, increasing by 3.13% and trading close to $1,600 after plunging to an all-time low of $1,412.

Ethereum Recovers After Panic Dip — But How Long Will It Last?

Ethereum's rebound occurs in the wake of temporary relief triggered by rumors that Trump would suspend tariffs for 90 days—except for China. This false news temporarily relieved market tension before being refuted, but the price action indicates how sensitive it is to macro events.

ETH has fallen 13.46% in the last week, and the recent relief rally is now challenging a key psychological level at $1,600. But for the altcoin to re-establish bullish structure, it needs to break above the $1,800 resistance level—a level that has been bolstered by a descending trendline since December.

Whale Activity Signals Long-Term Confidence

Despite the recent turmoil, Ethereum continues to draw serious accumulation by big holders:

As per Arkham Intelligence, an Ethereum OG has just deposited 2,000 ETH ($3.11M) into Kraken after having held it inactive for 7 years. The holder initially purchased 10,001 tokens for $352 back in 2017—displaying an enormous unrealized profit of more than $12M, though they missed out on the $45M peak.

Whale address 0x5fAD has bought 24,299 ETH ($57M) at $2,343 average since Feb 11, now holding an unrealized loss of $19.36M.

Address 0x96F4 purchased 22,000 ETH at $1,709, with a present loss of $3.6M—exhibiting high-conviction bets on ETH's long-term appreciation.

These buys show increasing whale appetite on the dips—a classic bullish sign for future price movements.

Technical Analysis: Levels to Watch for Ethereum

Technically, Ethereum remains at risk of a further correction if it cannot hold the $1,400 support level, which is also the lower edge of an established downtrend channel. A break below this trendline would have the altcoin looking at $1,000—a price last seen in mid-2022.

On the other hand, a breakout above $1,800 can be seen as a trend reversal and set the stage for a push towards the $2,000 level. However, strong resistance and bearish macro conditions are still obstacles.

MACD Indicator: Bearish momentum persists with histogram bars below the zero line.

RSI: Now near 30, indicating the altcoin is oversold and potentially due for some short-term relief.

Source: TradingView

Ethereum Price Outlook: Bullish Reversal or Bear Trap

Though Ethereum's recent rally is welcome, caution is still advised. The crypto space is yet to fully absorb macroeconomic shocks and repair from major liquidations. Technical analysis and whale activity portend a reversal, but the token needs to reclaim critical resistance levels to establish a new uptrend.