Ethereum (ETH) fall 7% as key indicators continue to decline

Ethereum (ETH) has plummeted more than 7% in the past 24 hours, despite positive news that President Trump has postponed tariffs for 90 days. Key technical signals indicate that the possibility of a trend reversal in the short term is still quite distant.

The BBTrend indicator continues to remain in the negative zone, while the accumulation momentum from the "whales" is showing signs of stagnation - both of these factors indicate that market sentiment remains cautious. Along with the exponential moving average structure (EMA) still tilted towards a downward trend, Ethereum may need a stronger demand force to escape the current weakening trend.

The BBTrend of ETH is still negative, but has improved compared to yesterday

Ethereum's BBTrend indicator has just recorded a slight improvement, rising from -21.59 to -18 immediately after the news of President Trump's suspension of tariffs. Although this number is still in negative territory, the change shows that the bearish momentum is showing signs of weakening.

BBTrend (Band-Based Trend) is a volatility-based technical tool that helps investors assess the strength and direction of a trend based on the correlation between price and Bollinger Bands. The further the indicator deviates from the 0 mark – whether in a positive or negative direction – the clearer the trend signal. Positive values reflect upward momentum, while negative values indicate that downward pressure still prevails.

The BBTrend indicator of Ethereum | Source: TradingViewSince April 8th, the BBTrend of ETH has consistently remained in the negative zone, indicating that market sentiment is still leaning towards negative. Although the recent increase can be seen as the first positive signal, the current value at -18 is still not enough to confirm a reversal.

To establish a sustainable upward trend, Ethereum needs to pull BBTrend back to the neutral or positive zone, ideally accompanied by confirmation from trading volume and clear price action.

Until then, the chart is still reflecting a correction phase; however, a few initial recovery signals have begun to appear.

Whales have not accumulated again

The number of Ethereum whale wallets – those holding between 1,000 and 10,000 ETH – has slightly increased from 5,340 to 5,382 during the period from April 5 to April 6, reflecting a short-term accumulation by large investors.

However, this figure quickly stabilized at 5.376 and has hardly fluctuated in recent days, indicating that market sentiment is falling into a state of waiting.

Ethereum whale count | Source: Santiment. Whale activity has always been an important indicator, as large-scale buy orders during market downturns or sell-offs to take profits when prices are rising can significantly impact overall price trends.

The fact that the number of whale wallets has remained almost flat indicates that the "big players" are taking a cautious approach, monitoring the market rather than making aggressive moves.

This may reflect a return of confidence, albeit weak, and not enough to drive a sustainable growth trend.

If a new accumulation wave emerges from the whale group in the near future, it will be a positive signal indicating that confidence is gradually being strengthened – a key factor that could pave the way for Ethereum's breakout.

Is the current price increase of Ethereum just temporary?

Although Ethereum has recorded a notable recovery following news of Mr. Trump's tariff policy being postponed, the structure of the exponential moving average (EMA) of this coin still indicates that the downward trend is prevailing. Specifically, the short-term EMAs continue to be below the long-term EMAs – a pattern that often reflects that selling pressure remains strong, even during short-term technical recoveries.

ETH/USDT 4-hour chart | Source: TradingViewWhen placed in a broader context, with the BBTrend indicator still maintaining a red color and accumulation activity from whale wallets showing almost no signs of change, it can be seen that Ethereum still lacks sufficient buying momentum to establish a clear and sustainable upward trend.

In the event of weakened current demand, ETH may face a deeper correction. The important support level is at the $1,412 area. If it cannot hold above this level, ETH is likely to break below the $1,400 threshold and could even fall to below the $1,300 range.

You can check the ETH price here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

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