ETH is in the news after it tagged a key level that flagged previous long-term market bottoms, raising hopes of potential reversal for the altcoin. The level could also act as a resistance in the short term when ETH’s price drops below it. In such a case, the analyst warned that a hike in panic selling of ETH could be likely in the near term.
Even so, U.S stocks and crypto, including ETH, have reacted like risk-on assets to Trump tariff updates. As such, a likely bottom could be accelerated only through a positive macro shift. Even institutional investors exited the altcoin for six consecutive weeks, as shown by the consistent outflows from U.S spot ETH ETFs.
With ongoing macro uncertainty, an extended decline to $1k can’t be overruled in the short term. However, the macro front currently dominates market direction and could delay a potential ETH rebound if the uncertainty persists in the short term. Besides, as revealed by a 7-week streak of ETH ETF outflows, the weak demand didn’t paint a strong recovery outlook.
As of now, at the time of writing this article, ETH is trading around $1,560 and has seen a gain of 1.33% in the last 24 hours and stands at a market cap of $188 Billion.