Ethereum extended the downtrend, setting a fresh low at around $1,400, a level not seen since early 2023. Continuing sales pressure has stirred up market sentiment, with many investors scaring that the worst is still ahead. Ethereum has been above 65% from its 2024 high and has not been able to find a robust level of support amid widespread market weakness and increasing macroeconomic uncertainty.
Despite the bearish outlook, some analysts believe a turning point may be approaching. According to top analyst Ted Palm, Ethereum is now deep in the surrender phase. He suggests that while there may still be a last 5%-10% dump left in the tank, particularly given the weaknesses of stocks these days, the broader market structure may set the stage for rebounds.
Pillow refers to a potential Federal Reserve pivot as a critical catalyst. Money policy changes could provide relief as traditional markets have risen in pressure and volatility. Historically, changing Fed stance has strongly boosted risky assets. If support from policymakers emerges, Ethereum can begin to steadily recover from recent lows, not before weathering the final wave of fear and uncertainty.
Ethereum’s yield will deepen, but feeding pivots can cause rebound
Ethereum is trading at $1,450 after experiencing a sharp 20% drop in just a few hours, marking one of the sharpest drops this year. Panic-driven selloffs have shaken up investors’ trust, and fear is now dominating the market. Ethereum was once expected to lead Altcoin Rally in 2025, but was unable to elicit those expectations. Instead, bearish momentum is built and continues to be disappointed as pressure intensifies.
The wider market situation is making the pain more painful. Tensions in the trade war, policy uncertainty from the US Donald Trump administration, and rising fears about a global recession have dragged both stocks and codes. The S&P 500 is already declining sharply, leading to increased fear of wider financial contagion.
The pillow analysis supports that Ethereum’s current plunge reflects a full-scale surrender. However, he suggests that the market may be approaching a turning point. “Maybe there’s probably the last dump left, but then it bounces back,” said Pillow. What are the main reasons? There could be a pivot from the Federal Reserve.
Pillow refers to a potential Federal Reserve pivot as a catalyst. If the S&P 500 exceeds 10% in just two days and volatility rises, further declines could force an emergency Fed response. Historically, rate reductions and updated quantitative easing (QE) have been bullish for risky assets like Ethereum. If the pivot arrived, Ethereum could quickly bounce back from its current level, but only after the last shakeout.
Ethereum slides to $1,410 for the bear to keep control
Ethereum plunged to $1,410 after losing its critical $1,800 support level, causing a wave of aggressive sales and panic across the market. With no clear support zones just below the current level, the bearish momentum is firmly controlled as ETH struggles to find a foothold. The breakdown below $1,800 marked a major technical obstacle, erasing trust among traders and accelerating downside pressure.
For now, the path with minimal resistance remains on the downside. If sentiment doesn’t stabilize immediately, Ethereum can continue to slide into a level of retest zone that may not be seen since early 2022. The lack of a support structure defined under current prices exposes ETH to more volatility in the near future.
But hope remains for recovery, but it depends on a rapid recall at a $1,800 level. A strong bounce back above this mark could indicate the perfect surrender, leading to new purchase rights from bystanders. Until then, Ethereum will remain vulnerable, and upward attempts could face resistance unless supported by wider market strength and critical macro shifts. The Bulls have narrow windows to turn momentum over before deeper losses are set.
Dall-E special images, TradingView chart
