Ethereum (ETH) Price Stuck Below $1,600 as Investors Pivot to Solana and Cardano

Ethereum (ETH) remains under pressure, trading below the $1,600 mark as of Thursday, April 17, while rivals like Solana and Cardano post notable gains.

Ethereum (ETH) price is struggling to stay afloat despite upbeat U.S. employment figures that usually bode well for riskier assets like cryptocurrencies.

While ETH attempts to regroup above the critical $1,400 level, a glance at the broader crypto landscape reveals a rather interesting capital flow.

As traditional tech stocks continue to slide—with NVIDIA leading the downturn due to a $5.5 billion charge linked to worsening U.S.-China trade tensions—investors are pivoting toward new growth avenues amid a tech-led equity downturn.

This shift in investor preference is evident in the contrasting performance of crypto assets, which have managed to hold their ground despite headwinds in other asset classes.

According to data from CoinGecko, the total crypto market capitalization is still holding above $2.7 trillion despite a turbulent week that saw major U.S. tech stocks post multi-day percentage losses.

At the same time, the latest report from the U.S. Bureau of Labor Statistics showed that initial jobless claims fell to 215,000 in the second week of April, surprising economists’ predictions for a modest increase to 225,000.

The figures also showed a slight increase in filings under federal unemployment programs, rising by 34 to 548, remaining among the lowest levels recorded since President Trump took office due to severance-related delays in benefit eligibility following recent terminations by the Department of Government Efficiency (DOGE).

However, continuing claims rose by 41,000 to 1.885 million, indicating some turbulence in long-term unemployment trends.

This continued labor market resilience is surprising considering heightened economic uncertainty and recent equity market volatility.

Emerging From the Shadows of Tech Stocks: Solana and Cardano Enjoy the Spotlight

The strong U.S. employment data could have positive implications for ETH and the broader crypto market.

With traditional tech stocks like NVIDIA, Apple, and Tesla posting multi-day losses, largely triggered by a $5.5 billion charge at NVIDIA amid worsening U.S.-China trade tensions, capital has begun rotating out of equities. Crypto markets, by contrast, have remained firm.

According to CoinGecko, total crypto market capitalization is still holding above $2.7 trillion despite this setback.

Usually, strong employment data is a double-edged sword for risk assets. But in this instance, the surprising strength in the labor market could lead investors to seek out alternative growth opportunities, especially with traditional tech stocks facing setbacks.

Given that major U.S. tech giants like NVIDIA and Apple have slid over the past week, while Tesla is struggling to recover from March lows, the capital flow out of equities could favor undervalued assets in the crypto sphere.

At present, ETH is trading below the $1,600 mark, presenting an interesting entry point for traders.

Moreover, with a Canadian ETF approval news for Solana surging and Layer-2 solutions attempting to address issues like scalability and rising gas fees on the Ethereum network, interest in next-gen smart contract platforms is heating up.

As a result, Solana and Cardano have outperformed Bitcoin and clocked in impressive weekly gains.

The table below summarizes the week-over-week performance of major cryptocurrencies, highlighting the capital rotation out of Ethereum and into Solana and Cardano.

Coin 7D Change

Solana +12%

Cardano +8%

Bitcoin +4%

Ethereum +3%

This analysis suggests that while Ethereum faces challenges, it's not entirely without hope.

If macroeconomic tailwinds emerge and macroeconomic sentiment shifts, perhaps due to underwhelming performance by traditional tech stocks and a tech-led downturn in the U.S. equity market, and if there's a reversal in sentiment from DeFi and NFTs, where Ethereum still holds dominance, then we might see a rapid recovery in ETH prices.

The post Ethereum Remains Muted Despite Strong U.S. Job Data as Investors Rotate Into Solana and Cardano