Ethereum price faces uphill battle amid declining market inflows and weak RSI

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Sholanke Dele

01.04.2025

Ethereum price faces uphill battle amid declining market inflows and weak RSI — Ethereum Struggles Within Bearish Channel Despite Modest April Rebound.

Ethereum price is facing a tough battle in the market as it remains stuck within a bearish channel, struggling to break free from its recent downtrend.

After a challenging first quarter in 2025, Ethereum ended March with a substantial 45% loss in market cap. While it showed some signs of recovery with a 0.74% gain on March 31, this was the first positive movement after six consecutive days of declines. As of April 1st, Ethereum’s price has managed to rise by 2.35% during the Asian and early European sessions, currently trading at $1,865.

This price action alongside restraint of capital inflow into the crypto market. Last week, inflows into digital assets totaled $226 million, a significant decline from the $644 million seen the previous week. This drop suggests that investor sentiment is shifting toward a more cautious approach, likely driven by ongoing macroeconomic uncertainties and regulatory concerns.

The pullback in inflows also reflects investors’ hesitation due to recent U.S. economic data, including the core personal consumption expenditure (PCE) report, which came in above expectations, influencing some negative sentiment toward risk assets. The cautious approach is reflected in the $226 million of inflows, suggesting that while investors remain interested in digital assets, they are taking a restrained but optimistic stance.

ETH price dynamics (March - April 2025). Source: Google Trend Data

Ethereum technical outlook hinges on $1,870 resistance and RSI reversal

Technically, Ethereum’s immediate challenge is resistance at the $1,870 level. The Relative Strength Index (RSI) is showing signs of improvement, rising from its oversold zone and approaching neutral territory. However, it remains in bearish conditions, indicating that the current recovery might not be sustainable unless the price breaks through significant resistance. If Ethereum fails to maintain this momentum and reverses from $1,870, it could face another decline, potentially testing the March low of $1,755.

Given the broader market conditions and technical resistance, the more likely scenario is a continuation of the struggle within its bearish channel, leaving traders watching closely for further developments in both price action and investor sentiment.

Trade war fears, and rising geopolitical tensions, drove Ethereum's weakness in recent months. Ethereum's price approached the $1,750 level, marking a significant decline from previous highs.

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