Ethereum Price Could Dip to $1,600 as Bearish Pressure Builds

The second-largest cryptocurrency by market cap has been slipping steadily, and according to analysts like Bit Bull, the downtrend might not be over just yet.

As of April 6, ETH is trading around $1,803, down about 1% on the day—and things could get worse before they get better.

Why $1,600 May Be Next

Bit Bull and other analysts believe ETH could fall as low as $1,600 in the coming weeks. The reason? A combination of weak technicals and worrying on-chain data.

Ethereum recently broke down from a symmetrical triangle pattern, a setup that usually signals continued bearish momentum. After failing to reclaim the key $2,000 level, ETH is showing signs of fatigue, with price action stuck in a tight, downward range.

At the same time, ETH’s market dominance is falling, and a descending triangle pattern on the dominance chart further confirms the risk of downside. Add in falling trading volumes and repeated failed support retests, and it’s no wonder sentiment is turning sour.

Ethereum Technical Snapshot – April 6, 2025

• Price: $1,754 (down 1.88%)

• Support: $1,752 → if broken, next target is $1,685

• Resistance: $1,836–$1,880 (must be reclaimed for any bullish momentum)

• EMA: Still trading below 50-period EMA, confirming bearish structure

• RSI (14): 36.95 (approaching oversold but no reversal yet)

Unless bulls can push ETH back above the $1,836 level with strong volume, the bears are in control.

On-Chain Data Reinforces the Bear Case

Ethereum’s on-chain fundamentals aren’t offering much relief either.

Here’s what we’re seeing:

• Active addresses are dropping, indicating lower user engagement on the network.

• ETH burn rates are declining, a sign that demand for transactions—and network activity—is cooling.

• Post-Merge inflation: Despite earlier deflationary hopes, ETH’s total supply has seen net increases, adding further pressure to price.

All these metrics suggest that Ethereum’s recent price struggles are rooted in more than just market noise—they reflect deeper network-level trends.

Is There Still Hope for a Bounce?

While things look grim in the short term, not everyone is bearish for the long haul. Standard Chartered, for example, has maintained a bullish year-end target for ETH—$4,000—though it did revise it down from its earlier forecast of $10,000.

That’s still a doubling from current levels, but a lot would need to go right for that to play out. A broader recovery in the crypto market, a return of network activity, and bullish macro trends would all have to align.

Key Takeaways:

• ETH is facing strong downward pressure, with a potential move to $1,600 if current support breaks.

• Technical signals, like the breakdown of a symmetrical triangle and falling RSI, support the bearish view.

• On-chain metrics—including lower user activity and rising ETH supply—are also painting a bearish picture.

• While long-term forecasts remain optimistic, Ethereum is in a tough spot for now.

Bottom Line: Ethereum is at a critical juncture. If support at $1,752 fails, we could be looking at a retest of $1,600—or worse. But crypto markets move fast, and sentiment can shift quickly.

For now, caution is key. Keep an eye on price action and on-chain data as this trend continues to play out.

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.