Revealing three key reasons why Ethereum's price has not yet bottomed out. In an uncertain macroeconomic environment, will ETH further plunge or rebound? The recent 18% rise in Ethereum may not be enough to confirm a bottom. Three reasons indicate that ETH may decline: key resistance levels, RSI not being oversold, and uncertain macroeconomic conditions. Key support levels to watch include $1,280 to $1,160 and $890 to $715. Ethereum (ETH) seems to be reversing its decline, having rebounded 18% from previous weekly lows. Does this mean that Ethereum's price has bottomed out? Here are three reasons why ETH may further decline.

Three reasons why Ethereum's price may continue to decline

Ethereum's price has reached the historical high of $1,385 in 2018, and many believe this could be a bottom. However, there are three key reasons that could lead to further declines in ETH. Reason one: Weekly chart shows key resistance level. TradingView's weekly chart shows that Ethereum's price is returning to $1,630, which is the highest trading volume level since February 2021. Due to the recent plunge that pushed ETH below this level, bulls need to convert this resistance level into a support level. As long as this resistance level persists, ETH's value is likely to continue depreciating. Moreover, the intermediate demand zone at $1,280 is the next price support level for Ethereum that can absorb selling pressure. After rising from $1,280 to $1,160 in December 2022, ETH's price soared over 40% in the following three to four weeks without any pullback. Therefore, the likelihood of returning to this area is also high. The absolutely critical support or demand area extends from $890 to $715, which is close to a 50% weekly candlestick due to buyer imbalance on a weekly basis.
Reason two: RSI has not been oversold. On the weekly chart, the Relative Strength Index (RSI) has not yet reached the oversold area. All major upward movements in Ethereum's price have begun after the RSI reached oversold levels. Therefore, ETH may further decline to the range of $1,280 to $1,160 and $890 to $715. Reason three: Uncertain macroeconomic conditions. From a macroeconomic perspective, trade wars have exacerbated volatility in the stock and cryptocurrency markets. Due to concerns about economic recession, the price prediction for Ethereum is bearish. Additionally, there are two major events this week: Fed Chairman Powell's speech and the release of March inflation data. The outcomes of these two important news events could trigger additional volatility, ultimately leading to a chaotic collapse. Therefore, overall, Ethereum's price outlook remains neutral to bearish. However, as the trade war is about to erupt, investors need to be more cautious.