Ethereum Price Forecast: ETH Stays Above $1,300 – Is The Bottom In?

As a result of this uptick, the price managed to stay above a key support and was saved – at least temporarily – for what could have been a catastrophic drop to its lowest level since December 2022.

However, ETH is still the worst-performing cryptocurrency of the top five with annual losses of 53% as rivals like Solana (SOL) and BNB Chain (BNB) have kept gaining ground in the smart contracts space.

ETH Futures Market Dries Up

Trading volumes have been lower compared to yesterday, which is expected and the market has been choppy for most of the Asian session as market participants wait for clearer signals before taking positions.

Despite an event-driven spike yesterday, open interest for ETH futures has dried up lately. On April 8, contract volumes reached their lowest level since the year started at $17 billion according to data from CoinGlass.

Traders may have been spooked as downward volatility has spiked and the market has been behaving quite erratically as Trump’s back-and-forth on tariffs has messed up market dynamics temporarily.

Meanwhile, Ethereum developers have now set a date for May 7 to introduce the 11 major changes that are part of this upgrade. The end result should be a more scalable network that helps layer-two protocols like Arbitrum become more efficient.

In addition, validators will now be required to stake 2,048 ETH rather than 32 to consolidate the validator pool and prioritize the largest and most efficient node operators.

Depending on how this upgrade goes, the price of ETH may react positively to the news as long as it improves the blockchain’s competitiveness.

Double-Bottom Could Result in Short-Term Gains

ETH has gone down by nearly 6% today as traders have taken some profits off the table after yesterday’s significant uptick.

The price has been progressively declining in the past 12 hours while the closely-watched U.S. inflation report for March did not move the market’s needle much even though the annualized rate came in 20 basis points below the consensus estimate.

Heading to the daily chart, we can see how ETH managed to stay above a key support at $1,370 and bounced before touching it after Trump paused tariffs.

Momentum indicators have been improving slightly as two bullish divergences popped up in the Relative Strength Index (RSI) before last Friday’s announcement.

However, this tariff-led drop messed up with these bullish signals and now the market lingers on how Trump will deal with China’s reluctance to negotiate.

These are heavily politicized markets where normal structures and trading signals will probably work less effectively than usual and win rates may drop from regular levels.

At this point, in three out of three of the past instances in which Ethereum’s RSI has stepped out of deep oversold levels, it has made a strong comeback. Will history repeat?

The MACD’s histogram shows that negative momentum has decelerated and this support bounce can be considered a double bottom.

Most indicators favor a bullish short-term outlook for the next few days unless President Trump decides to make another unexpected move.

Looking at a lower time frame, the price of ETH seems to be on an upward trend but it is currently tagging the lower trend line of a rising hedge that has been forming since Tuesday.

Momentum indicators favor a bearish outlook as the Relative Strength Index (RSI) is nearly 18% below the signal line while the MACD’s histogram shows that negative momentum is accelerating.

The market will probably aim to fill yesterday’s supply imbalance. So, the price will likely drop to $1,510 first before the uptrend resumes.