ETHUSD selling with target at 1,300 as bearish trend persists

On Thursday, the price of ETHUSD opened at the level of 1,573.42. Over the past few days, the market has been showing signs of consolidation with limited volatility, reflecting uncertainty among investors.

The global macroeconomic situation remains the key driver of the ETHUSD price. Tougher fiscal policy and trade restrictions, such as new license terms for exporting Nvidia chips to China, reinforce the negative sentiment of market participants. These events undermine confidence in the technology sector, which is closely linked to the development of blockchain infrastructure, including Ethereum. As a consequence, investors are becoming more cautious, which is contributing to the decline in the asset value.

In addition, on Wednesday there was news about a possible sale of seized crypto assets in China, where mining and use of cryptocurrencies is prohibited. This could lead to a significant increase in supply and further decrease in price. Such events also undermine investor confidence in the global adoption of cryptocurrencies, especially among institutional players, which reinforces the bearish sentiment.

Competition from other blockchains also weighs on Ethereum's price dynamics. Emerging use of cryptocurrencies such as Solana, Avalanche, and Binance Smart Chain are attracting developers and investors, which has the potential to redirect capital flows out of the Ethereum ecosystem.

Technical indicators confirm the bearish state of the market. The Relative Strength Index (RSI) stands at 35, which is below the neutral 50 mark and indicates increasing selling pressure. In addition, the price remains below the 200-day exponential moving average (EMA), which is currently at $2,578.84, signaling the ongoing downtrend.

The sideways consolidation is most likely to continue in the near term while investors are waiting for some significant news from the United States. However, the price of ETHUSD might start to decline and breach the support level of $1,500, which will be a signal for a further drop in quotes. In this case, $1,300 may become the target level.

Current recommendation:

Sell at the current price. Take Profit — 1300. Stop Loss — 1754.80.