Downtrend channel guides ETHUSD to 1700 level

Ethereum prices continue to move within a descending channel that began in mid-December. After hitting a one-and-a-half-year low at the start of this week, the price attempted an upward bounce, but this movement quickly fizzled out. Given the current situation in financial markets, particularly for ETHUSD and cryptocurrencies in general, it is difficult to expect significant demand from investors. As traders focus on increasing the share of safe-haven assets in their portfolios, the value of Ethereum may decline further to the 1700 level.

The world's second most important cryptocurrency concluded the first quarter with a loss of nearly 45% of its capitalization. This marks the worst performance since 2018, reflecting the disappointment of market participants. The much-anticipated Pectra update, which had raised high hopes, has not yet been released. Developers are now pointing to April 30 as a possible release date. Until then, Ether has few supporting factors, and the potential introduction of import duties in the United States adds further pessimism for crypto investors.

According to Lookonchain, several large holders of ETHUSD have transferred their assets to the Binance exchange and other platforms. Such actions often signal impending cryptocurrency sell-offs, heightening anxiety among traders. Based on COINOTAG analysts' assessments, the ‘bears’ intend to keep the price below the resistance range of 1857–1963 and are waiting to see the actions of the ‘whales.’ If these large holders begin to offload Ethereum en masse, the current downward trend could accelerate further.

FXStreet experts highlight the critical level of $1861. If the price fails to reclaim this level in the coming days, ETHUSD risks collapsing to the lows seen in the fall of 2023, potentially reaching the 1500–1700 range. This bearish scenario is supported by the RSI indicator, which remains far from the oversold zone due to the smooth price decline and the absence of sharp fluctuations.

Consider the following trading strategy:

Sell ETHUSD at the current price. Take profit – 1700. Stop loss – 1950.