Ethereum Price Crashes Below $1,600, $2.5 Billion in Value Exits as Rivals Surge Ahead

Ethereum is falling again, with its value falling below strong support and its preeminence over Bitcoin rapidly waning. Although network improvements have lately occurred, user demand is behind, and competitors are grabbing momentum. Traders are tense since funds are shifting from the Ethereum ecosystem to faster, less costly options. Whether the Ethereum price can level out or a more sudden fall is forthcoming is the main issue now. Without a big change in momentum or attitude, bulls may be unsure about their path forward.

Bearish Pressure Builds as ETH Lags Rivals 

Ethereum’s recent breakdown highlights a broader confidence issue. Its trading pair with Bitcoin has dropped below a closely watched level, reinforcing the shift in capital toward other chains. At the same time, Ethereum’s share of the decentralized finance space has steadily declined. Billions in value have exited the Ethereum network in just a few weeks, showing that users and investors are looking elsewhere.

The repeal of key DeFi regulations was supposed to lift sentiment, but instead, it spooked the market. Rather than attracting new capital, the move triggered fresh outflows. On-chain activity is stagnating, with address counts and transactions stuck in neutral. Meanwhile, Layer-2 solutions are absorbing more traffic, making the Ethereum ecosystem’s mainnet look increasingly underused.

All this adds up to growing pressure on ETH’s price. Technical patterns suggest a potential bearish continuation unless something shifts quickly. Bulls need to see a decisive recovery, both in price and on-chain engagement, or risk watching ETH fall to its lowest levels in years. Let’s take a look at the Ethereum price prediction to see how these developments impact the price of Ethereum.

Ethereum Price Prediction for April 16, 2025

The price of ETH/USDT is now at $1,603 and is attempting to recover from a support zone around $1,580 on the 1-hour chart, which displays a consolidation phase. Near $1,690, which has consistently rebuffed bullish advances, resistance is situated. With intermediate support levels around $1,500 and $1,420, the price action points to a market that is range-bound between $1,580 and $1,690. The RSI, which is at 44.34 and indicates a neutral stance, is rising from oversold levels, which might be a hint of a short-term recovery or the development of bullish momentum. 

Chart 1: Analysed by vallijat007, published on TradingView, April 16, 2025

Past RSI peaks and dips have aligned with overbought and oversold price conditions, supporting its reliability. MACD reveals a past “Death Cross,” where the MACD line crossed below the signal line, confirming bearish momentum. While histogram bars are reducing, suggesting weakening selling pressure, the MACD remains in negative territory, so momentum is still slightly bearish. If the Ethereum price holds above $1,580, a retest of resistance near $1,690 is possible. However, a breakdown could target deeper supports. Traders should monitor RSI and MACD for clearer confirmation of the next move.

Ethereum at a Crossroads

The Ethereum network is losing ground, both on the chart and in the market. As rivals chip away at its dominance and technical signals remain shaky, ETH sits at a make-or-break level. Traders are watching closely: hold support, and there’s room to rally; lose it, and a sharper correction could follow. With sentiment fragile and capital rotating out, Ethereum needs a clear catalyst to reverse course. Until then, the risk is real, and the clock is ticking for a bullish turnaround.

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