ETH shows resilience amid stock market turmoil

Current Ethereum Price: $1,810

• Ethereum has displayed resilience amidst the recent downturn in financial markets, maintaining a trading position above $1,800 even in light of hawkish comments from Fed Chair Jerome Powell.
• If cryptocurrency markets remain stable amid ongoing global trade tensions, ETH might experience a rebound.
• Bulls in the Ethereum market are working to uphold the crucial $1,800 level after a temporary dip to $1,760.

As the weekend approached, Ethereum (ETH) demonstrated robustness by staying above $1,800 on Saturday, despite significant declines in the stock market and precious metals triggered by tariff announcements.

ETH Exhibits Resilience Amid Market Volatility

While ETH, like many leading cryptocurrencies, maintained its position going into the weekend, the S&P 500 experienced a nearly 6% drop, leading to a cumulative market capitalization loss of $5.06 trillion over two days. The Nasdaq-100 and Dow Jones also faced substantial corrections, falling 20% and 10% respectively from their peaks in December. Both gold and silver suffered losses, declining by 2.5% and 7.1% respectively.

The decrease in the financial sector intensified following remarks from Federal Reserve Chair Powell at a conference in Virginia. Powell noted that the “larger-than-expected” tariffs could contribute to increased inflation and hinder economic growth, stating that the Fed would take a “wait-and-see” approach regarding policy decisions.

“We are well-positioned to wait for greater clarity before considering any policy adjustments. It is premature to determine the most suitable direction for monetary policy,” stated Powell.

This statement heightened recession fears, resulting in sharp declines across the stock market.

The strength showcased by Ethereum, and the crypto sector as a whole, suggests that investors might be looking for a hedge, for which cryptocurrencies could be deemed suitable.

During the brief COVID-induced recession in 2020, Ethereum was among the top-performing assets, significantly outperforming Bitcoin (BTC) with a remarkable 460% increase. Therefore, ETH may have the potential for a recovery in the coming weeks if the cryptocurrency sector remains stable despite ongoing trade conflicts, particularly with the Pectra mainnet upgrade scheduled for May 7.

Recent months have seen ETH grappling with negative sentiment and lagging behind other top cryptocurrencies like Bitcoin, XRP, and Solana (SOL) during the recent post-election rally. Following a market correction in late January, ETH experienced a sharper decline, dropping nearly 55%, compared to Bitcoin’s approximate 27% fall.

Ethereum Price Outlook: ETH Traders Rally at the $1,800 Support

In the past 24 hours, Ethereum recorded $43.24 million in futures liquidations, according to data. The overall liquidations consisted of $20.84 million in long positions and $22.41 million in shorts.

Buyers are making efforts to sustain the support level around $1,800, quickly pushing prices back up after a brief moment below $1,760.

ETH/USDT daily chart

If bullish traders can continue to defend this level, ETH may test a descending trendline resistance formed since March 24. A strong move above this trendline, establishing it as support, could enable ETH to regain bullish momentum and challenge the critical resistance at $2,069.

Conversely, if bulls fail to maintain the $1,800 support, ETH could decline to $1,500.

The Stochastic Oscillator (Stoch) is currently in the oversold region, suggesting a prevailing bearish trend and the potential for a reversal. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains just above neutral territory. A recovery for ETH could occur if the Stoch re-enters more favorable conditions, and histogram bars stay above the neutral level.