Following a 50% correction, ETH has bounced toward $1,600 — and rising U.S. demand could be the key to a sustained recovery | Credit: Derek Fenech
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Key Takeaways
The Ethereum Coinbase Premium Gap has increased to 0.21, indicating rising buying pressure from the U.S.
Despite ETH’s 50% drop, Tron founder Justin Sun says the project will not sell its holdings.
Ethereum has broken out of its bearish channel, suggesting a potential trend reversal to the upside.
For the first time since April 1, Ethereum (ETH) is seeing renewed market participants in the U.S. This development comes after Ethereum’s (ETH) price has corrected by 50% within the last 90 days.
Amid the decline, ETH plunged below $1,500, with some analysts calling for a lower value. But as of this writing, the cryptocurrency’s price has bounced and is trading close to $1,600.
With buying momentum building up, does this mean ETH’s price will erase more of its gains? Let’s find out.
U.S. Risk Appetite for ETH Rises
For a large part of the month, U.S.-based market participants have been offloading ETH, as reflected by the declining Coinbase Premium Gap, a metric that measures the difference between ETH’s price on Coinbase and global exchanges.
A negative or falling premium indicates heightened selling pressure from American investors. However, with U.S. President Donald Trump placing a 90-day pause on the controversial tariffs, risk appetite appears to be returning.
However, U.S. investors are not the only ones holding back from selling. On Thursday, April 17, Tron founder Justin Sun revealed that his team has no plans to sell the cryptocurrency, despite its underwhelming performance.
According to Sun, Tron intends to deepen its collaboration with Ethereum, suggesting that offloading the project’s native token would contradict its long-term vision.
“ETH is currently at a low price, but we have no intention of selling our ETH holdings. Tron will continue to seek opportunities to collaborate with more Ethereum developers and build our industry together,” The Tron founder stated.
ETH Price Analysis: Bullish Reversal Ahead
From a technical perspective, Ethereum’s price has broken out of a descending channel. The channel formed as a result of ETH’s decline from $3,355 in January to sub-$1,500 levels.
In addition to the breakout above the upper trendline of the channel, the Moving Average Convergence Divergence (MACD) reading has jumped to a positive reading. This rise indicates bullish momentum.
A closer look at the MACD shows a bullish crossover with the 12-day Exponential Moving Average (EMA), rising above the 26 EMA (orange). Should the MACD rating continue to climb, Ethereum’s price could climb past the $1,966 resistance at the 0.786 Fibonacci level.
If validated, the next move for ETH could be a rise to $2,425. However, if momentum around the cryptocurrency turns bearish, this prediction might not happen. In that case, ETH’s price could drop to $1,382.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
