$1,700 or $1,200. Where is Ethereum Next Price Target?

Ethereum hit a high of $1,638 on Monday. The hike was short and fast in response to the previous day’s massive decline. However, it was short-lived as prices nosedived.

The largest altcoin dropped to a low of $1,411 before rebounding. It returned to its opening price and printed a doji.

ETH’s recent price action follows a series of notable price declines. One such happened on Sunday when it slipped from $1,805 and lost the $1,600 support. The coin retraced to $1,535 before slightly rebounding. Nonetheless, it lost over 12% during the session.

Ethereum’s downtrend follows a massive selloff in several sectors of the global economy—reports of several stocks crashing spread like wildfire. Almost every country reported similar declines. For example, US stocks wiped off over a trillion in market cap with 30 individuals losing $500 million.

Large-cap firms like Apple, Nvidia, and Tesla lost 6%, 7%, and almost 8%, respectively. The White House announced that the large selloffs were not due to POTUS tariffs. The advisor blamed the Federal Reserve for the current situation, citing its failure to cut interest rates.

However, it is worth noting that several sectors saw massive selloffs since the US embarked on its bid to place “retaliatory” levies on other countries. Many investors state that the President’s approach to the latest trade actions was unnecessary.

Fear, uncertainty, and doubt are at an all-time high as traders struggle to understand the next price actions. They are unable to break out of the bearish dominance, causing the prices of several commodities to remain significantly low. Most of these assets lost all of the gains they accumulated between November and December.

Ethereum Still in a Downtrend 

The apex altcoin printed a large candle with a small body. Trading actions during the session sparked hopes of further recovery. However, current price movements suggest that the downtrend is ongoing. ETH trades at $1,464 after surging to its previous day’s high but retracing. Currently down by almost 6%, the coin eyes a slip to a key support.

Data from CryptoQuant points to several bearish events affecting the largest altcoin. Traders are in a panic mood, moving assets from cold storage into trading platforms. The exchange netflow total is 100% positive, indicating that they transferred more coins on Tuesday than the previous day. 

However, other onchain metrics indicate that the whales were behind most of the inflows, as transfer volume dropped by 43% and active addresses declined by 34%. It is worth noting that transactions plummeted. 

$1,700 or $1,200

Data from DeFiLlama shows that investors have moved to a long-term strategy. The total locked value on the chain is seeing significant increases. TVL surged from 27.7 million ETH to 31 million ETH over the last three days. 

The shift may translate into further price stability as more assets remain within the coin’s ecosystem. However, it is worth noting that the crypto market is experiencing massive declines due to some fundamentals.

Investors have yet to break free from the fear these instruments caused. Donald Trump announced he may hit some countries with further tariffs if they respond to his “retaliatory” levies. This is a sign that the trade war may not end soon. 

It may spell further decline for ETH, causing a dip to $1,200. However, easing tension and policies may have the opposite effect. 

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