Ethereum (ETH) Price Prediction: Will ETH Recover After a Recent Slump?

Ethereum price (ETH) has been experiencing a slump for some time now. This was largely influenced by President Trump's recent decision to impose new tariffs

The price of Ethereum (ETH) has been on a rollercoaster ride for the past few months. Several factors have influenced this volatility, including the macroeconomic landscape, the regulatory environment, and the technical analysis of the ETH chart.

One of the key macroeconomic events that impacted the price of Ethereum was the recent decision by President Trump to impose new tariffs on China, Canada, and Mexico. This move instilled fear within the business and trading communities, leading to a significant liquidation event on February 3rd.

As a result, many tokens across the ecosystem, including ETH, saw substantial price drops, with the Ethereum price falling to $2,170. This sharp decline left many investors worried about the market’s future.

However, a shift in sentiment occurred when President Trump announced a temporary suspension of trade tariffs on Canada and Mexico. He also signed an executive order to establish a sovereign wealth fund to strengthen the U.S. economy.

These developments helped restore confidence in the financial markets, allowing Bitcoin (BTC), Ethereum (ETH), XRP, and other altcoins to recover. Amidst this backdrop, Ethereum crypto has shown signs of resilience.

After the dust settled, ETH began to regain momentum. Currently, it is trading at $2,721, reflecting a 1.33% increase in intraday trading. Moreover, analysts hint that if Ethereum crypto can break through key resistance levels, it may trigger a larger rally.

With this, the long-term targets potentially reach as high as $8,540. Exchange Reserves Fell Drastically & Analysts Are Bullish On Ethereum Price

On February 3rd and 4th, 2025, U.S. ETFs focused on Ethereum saw unprecedented trading volumes. During this period, the data revealed net inflows of $84 million and $307 million into Ethereum ETFs, respectively.

This surge in ETF activity coincided with a selloff that temporarily drove the Ethereum price down to $2,150. However, it quickly rebounded.

The following days, February 5th and 6th, saw a significant drop in inflows. This fell to $18.11 million and $10.65 Million, respectively. Despite this decline, Ethereum ETF data has remained positive throughout February 2024, contrasting with Bitcoin ETF trends.

Furthermore, data from CryptoQuant indicates that Ethereum’s exchange reserves have been plummeting to the depths since the start of 2025. From a peak of $78 billion in late December 2024, reserves have dipped to $52 Billion. This indicates that they may continue to fall drastically throughout 2025, creating a bullish scenario for the Ethereum price.

Now, let’s quickly glance over some technical analysis to assess the upcoming trend for Ethereum.

The EMA bands show a distinctly bearish trend, as the Ethereum price is positioned below all significant bands. However, it rests near a critical support block that previously acted as resistance during the November 2024 rally.

If the price manages to hold above this support level and bounce back up, it could potentially invalidate the bearish EMA bands and shift the technical outlook.

The RSI for Ethereum stands at 34.62, indicating that the asset has cooled off and is approaching oversold territory. If Ethereum remains at this level for a few more days, it could signal a potential reversal.

A rise in the RSI above 50 would suggest a return of buyers and a possible shift in the trend. Similarly, both the MACD and AO are currently in a bearish state.

However, the MACD histogram shows that the bearish momentum is gradually fading. This hinted at a potential weakening of negative pressure.

A bullish crossover in the MACD could further reinforce a positive directional movement. Additionally, the CMF indicated that money flow is rising, having surged above the zero line to reach 0.07.

This uptick suggested increasing buying interest. This could support a bullish move for the price of Ethereum shortly.