Can Ethereum recover from a devastating sell-off? Here's what the chart says

Ethereum (ETH) continue to move sideways in the $1,600 region as traders keep an eye on trade war headlines and comments from Fed policymakers, and wonder if the cryptocurrency will soon recover from the devastating sell-off. After the volatility that caused Ethereum to drop from a high near $2,000 earlier this month to a low below $1,400 last week, ETH price has calmed down in recent sessions. However, chart analysis still shows a pessimistic picture Ethereum continues to trade below major moving averages, including 21DMA, which has created strong resistance in recent months.

However, with continued macro uncertainty, betting on a strong recovery right now would be risky. Fed Chair Jerome Powell on Wednesday stressed the risk that Trump’s trade war could both hurt economic growth and push inflation higher, putting the Fed in a tough spot.

The remarks were interrupted by some analysts as hawkish, and were a signal that the Fed would not rush to cut interest rates to support a weakening/falling economy. Risks remain tilted in favor of continued losses for risky assets such as stocks and altcoins (như ETH) in the coming weeks and months. Can Ethereum recover? Ethereum’s short-term outlook may not be very positive, but is the cryptocurrency preparing for a major recovery? Mr. Crypto noted on X on Wednesday that ETH has fallen below its actual price, which he called “a great buying opportunity.” In fact, investors who bought in when ETH was near or fell below its actual price in recent years will make a decent profit. This time was probably no different. Ethereum remains the dominant DeFi chain, still far ahead of its closest rivals like Solana or Tron in terms of total value locked in smart contracts.

And with Ethereum clearly the preferred currency in the pro-Trump administration (gia the Trump family being HODL), Ethereum has all the necessary arguments to dominate as the cryptocurrency market begins to recover. So when can that happen? Well, previous altcoin seasons have taken place as central banks (dẫn Fed) inject liquidity and economic uncertainty has eased. That is, the situation happened but the Federal Reserve (và khác) central banks responded by injecting more liquidity and the crisis subsided. We haven’t gotten to this point yet. First, we still need to have a (tức crisis caused by ra) tariffs, then an aggressive Fed response (lãi zero and QE) rates. Then it will be time for the alt season. Meanwhile, savvy investors would do well to continue accumulating Ethereum at a discounted price. ETH will most likely hit a new record high before Trump’s four-year term ends, more than 3 times higher than the current level.