Ethereum (ETH) Price Struggling to Validate a Clear Uptrend Following Jerome Powell's Comments

Following comments by Federal Reserve Chair Jerome Powell, Ethereum's price is struggling as it fails to validate a clear upward trend.

Federal Reserve Chair Jerome Powell’s comments on the possibility of the central bank cutting interest rates "too soon" have put Ethereum (CRYPTO: ETH) price in a bleak outlook.

What Happened: According to recent data from crypto analytics firm Coinglass, liquidations in cryptocurrencies amounted to approximately $40.6 million over the past 24 hours. Of this total, long positions were liquidated to the tune of about $26 million, whereas short positions were liquidated to the extent of roughly $14.6 million.

The recent decrease in cryptocurrency prices was accompanied by a significant surge in exchange reserves. On Wednesday alone, more than 77,000 ETH were transferred to derivative exchanges, marking the largest single-day net inflow over the past four months.

This rapid increase in stitutional activity signals a potential shift in market dynamics, which could exert further selling pressure on cryptocurrencies in the short term.

However, data from IntoTheBlock indicates that the Netflow metric stands at approximately -6,800 ETH, signifying a balance between coins entering and leaving exchanges.

Also Read: Large Inflows Hit Ethereum: Will ETH Price Drop Again?

According to Coinglass, the open interest in Ethereum has been increasing despite the downward pressure on the cryptocurrency’s price. The OI surged by over 3.87%, reaching over $18 billion.

Despite the slight increase, the funding rate has been trending around the negative region at 0.0015%, indicating that bears still have the upper hand in the immediate term. The price is expected to find support at the immediate Fibonacci levels.

According to a CryptoQuant analyst, Ethereum is currently trading close to its realized price, which is a level that has historically signaled major price rebounds. The realized price, a measure of the average price at which coins last changed hands, is estimated at around $1,585.

What Next For Ethereum Price: Ether’s attempt at a price recovery is losing momentum around EMA trend lines as bears strongly defend EMA20 level.

Also, the price is still hovering around the descending resistance line, which is placing the crypto in bleak outlook. Currently, ETH price trades at $1,588, declining over 1.5% in the last 24 hours.

If sellers manage to drive the price below $1,400, it could trigger a deeper decline toward the end of the bearish channel at $1,130. This level is expected to attract strong buying interest. But if bearish momentum remains strong, a further drop toward $1K is possible.

On the upside, a decisive break and close above $1,700 would be the first indication that buyers are regaining control. Such a move could open the path for a rally toward $2K.

Although the 50-day SMA might slow down the recovery, it is likely to be surpassed if bullish momentum builds. A strong push above $2K would suggest that the downtrend may be reversing.