Ethereum (ETH) continues to struggle below $1,600, despite improving U.S. economic data, as traders show increased preference for faster and cheaper blockchain platforms like Solana and Cardano. While Ethereum remains a dominant force in decentralized finance (DeFi), its market share is slipping as capital rotates into competitors benefiting from regulatory changes and lower fees.
Market Trends and Competition
Ethereum’s price has underperformed relative to Bitcoin and altcoins, with Solana and Cardano seeing impressive gains. Solana, in particular, has surged due to ETF approval news in Canada, while Ethereum is held back by concerns over rising gas fees and upcoming network upgrades. Despite Ethereum’s strong fundamentals in DeFi and NFTs, its performance is overshadowed by the swift rise of next-generation smart contract platforms.
The Impact of US Job Data
The latest U.S. job data offers some hope for Ethereum’s prospects. The number of initial jobless claims fell to 215,000, signaling a resilient labor market despite broader economic uncertainty. This positive employment news could lead to increased capital flows into undervalued crypto assets, including Ethereum, as investors seek alternative growth opportunities.
Ethereum’s Technical Outlook
Ethereum’s price remains under $1,600, continuing to face strong resistance. The technical indicators paint a bearish picture, with Ethereum trading below its 50-day, 100-day, and 200-day simple moving averages (SMAs). The Relative Strength Index (RSI) also sits at 39.53, indicating weak buying interest and no clear bullish momentum.
Unless Ethereum can break above $1,700, the bearish trend is likely to persist. A failure to hold above $1,560 could lead to a retest of lower support levels, possibly near $1,400. Traders will be watching for any signs of a reversal, especially if the improving macroeconomic conditions trigger a resurgence in demand for ETH.
Ethereum’s Price Forecast
In the current market environment, Ethereum’s price could face further downside pressure unless it can reclaim key resistance levels. Given the sluggish momentum, a retest of $1,400 remains a likely scenario unless bullish sentiment emerges to push ETH back above the $1,700 mark.
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