Ethereum faces rejection at a key resistance level as bearish pressure mounts, raising the risk of a correction to $1,533.

While Bitcoin gains momentum and hints at a potential breakout rally, Ethereum is struggling to break above the $1,900 mark. Despite a 4.56% jump last night, Ethereum faced resistance at the local trendline.

However, the bulls suffered another setback with an intraday pullback of 2.33%. Currently trading at $1,860, Ethereum shows signs of a potential correction. Could this lead to a drop to $1,500?

Ethereum Analysis: Warning of a Steeper Correction to $1,533

In the daily chart, Ethereum’s price trend continues to follow the pattern discussed in previous articles. Ethereum is testing the local resistance trendline within the channel pattern, which limits the likelihood of a bullish breakout.

With another failed bullish attempt, Ethereum is showing signs of a potential downswing from the secondary trendline. The 2.33% intraday pullback drops the market price to $1,860, slowly undermining the previous overnight recovery.

As bearish pressure increases, Ethereum could fall to the recently formed support zone between $1,807 and $1,834. However, the stochastic RSI indicator suggests a minor possibility of a breakout rally, especially if the broader market enters a bullish recovery phase.

The positive crossover of the K and D lines in the stochastic RSI is preparing for a new positive cycle. This could lead to a breakout rally challenging the overhead resistance trendline within the falling channel pattern.

Based on pivot levels, an uptrend could push Ethereum above the center pivot, near the psychological $2,000 level. Optimistically, a channel breakout could see Ethereum test the R2 resistance level at $2,839.

On the other hand, a deeper correction below the $1,800 mark could likely test the S1 support level at $1,533.

Expert Predicts Stronger Altcoin Season Ahead

Despite Ethereum’s ongoing struggles, Joao Wedson, founder of Alphractal, is anticipating a new altcoin season. The analyst notes that while altcoin dominance has declined, excluding Ethereum and stablecoins, it has remained in a neutral zone since late 2022.

Joao suggests that Bitcoin has captured a significant portion of Ethereum’s market cap, as evidenced by the rising Bitcoin dominance, now at 62.5%. Meanwhile, Bitcoin and stablecoin dominance exceeds 70%. Conversely, Ethereum and other altcoins now hold close to 29%.

On the positive side, Joao believes that the next altcoin season could be even stronger as Bitcoin and stablecoin dominance increases. This assumption is based on the higher liquidity of stablecoins in the market and the stability driven by rising Bitcoin prices.

Ethereum ETFs Face Turbulent Waters

As of April 1, the daily total outflow from U.S. Ethereum Spot ETFs was $3.58 million. While 21Shares saw a net inflow of $1.72 million, Bitwise recorded an outflow of $2.60 million, and Grayscale saw an outflow of $2.70 million.

Other Ethereum ETFs maintained a net-zero outflow. Last week, Ethereum ETFs recorded a total net inflow of $2.84 million, ending a five-week streak of outflows.

As of April 1, the total net assets of U.S. Ethereum Spot ETFs stand at $6.54 billion, representing 2.83% of Ethereum’s market cap.