Ethereum Price Trend: Could $1,600 Be the Bottom Before the Next ETH Rally?

The Ethereum price has faced a sharp decline after a significant plunge from nearly $2,000 to below $1,400. Despite the macro uncertainty and the emergence of bearish trends, traders are monitoring the positive signals coming from ETH.

While analysts are divided, some, like Ted Pillows, foresee a possible breakout. Notably, the ETH price still trades below crucial resistance levels such as the 21-day moving average. Despite current pressure, Mister Crypto believes a bottom may be in. He is pointing toward a possible ETH rally in the near term.

Ethereum Faces Resistance Amid Fed Uncertainty

Despite stabilizing slightly after last week’s drop, Ethereum remains volatile to external market momentum. The Ethereum price market outlook is being shaped by U.S. Federal Reserve policies and fears surrounding a potential trade war under Trump’s administration. Fed Chair Jerome Powell’s recent comments, interpreted as hawkish, have dimmed hopes for an immediate price drop.

Chart 1 – Provided by joelpfrank, published on TradingView, April 17, 2025.

Chart analysis indicates that Ethereum is still trading below its short-term moving averages, especially the 21DMA. Currently, the price is moving sideways around the $1,600 level. It is a consistently resisted upward momentum. This signals a potential continued downturn in the Ethereum price trend. Only a major macro change or a surge in demand can cause it to reverse and cause bullish sentiment.

Is Ethereum Poised for a Shocking Rebound?

Though the broader macroeconomic environment is complex, not all comments are negative. On X, Mister Crypto suggested that the ETH price may have already bottomed out, hinting at a surprise ETH rally. Historically, purchasing Ethereum below its analyzed price has yielded strong returns. This is the reason why investors are feeling more optimistic.

$ETH has just bottomed out.

But most have given already given up here.

Perfect time for a rally! pic.twitter.com/P5lv72qANx

— Mister Crypto (@misterrcrypto) April 16, 2025

Ethereum still commands the top spot in the decentralized finance (DeFi) ecosystem. ETH has a higher total value locked (TVL) than competitors like Solana or Tron. Ethereum will be well-positioned due to this, as well as the strong institutional interest and community support.

Fed Chair Jerome Powell commented on Ethereum’s association with crypto-positive sentiment. This includes reports of Trump’s family holding ETH, adding a unique political narrative. If trade tensions push the economy toward recession, a liquidity-driven rebound could emerge.

What Will Spark Ethereum’s Next Bull Run?

For now, analysts suggest that any sustained ETH rally would require two triggers. The clear economic downturn and liquidity boosting from central banks. Historically, these conditions have aligned with bull runs in altcoins.

In the meantime, many investors are gradually accumulating at lower prices. They are assuring that the Ethereum price trend will ultimately reverse. Long-term prospects remain intact if Trump’s administration brings more crypto-friendly policies and regulatory clarity.

While Ethereum continues to lead the DeFi space, emerging projects are also making waves. One such project is Solaxy (SOLX), a layer-2 scaling solution built on Solana. Since its presale launch, Solaxy has raised over $30 million and completed key smart contract audits. It is positioning itself as a promising addition to the evolving blockchain landscape.

Bottom Line: Is Now the Time to Stack ETH?

The current Ethereum price market outlook may appear uncertain, but it is not without optimism. Macro challenges are temporary, and history has shown Ethereum’s resilience. While the path to an all-time high may be gradual. However, staking ETH now could reward those with a long-term view. 

With its strong fundamentals, political backing, and dominance in DeFi, the Ethereum price trend is likely to go upward. Once the economy shifts, it possibly marks the beginning of the next ETH rally.