The recent Put breakthrough in Ethereum indicates a high likelihood of retesting $1,500 in the coming weeks. The reasons are as follows.

Investors in ETH feel desperate when they see the price of Ethereum continuing to fall compared to major competitors like Bitcoin.

Despite an unexpected slowdown in American Consumer price inflation, which provides room for the Federal Reserve to lower interest rates later in 2025, this has not significantly boosted the price of Ethereum, which still lingers below $2,000.

Although other major Cryptos like Bitcoin, XRP, and BNB have steadily recovered from their lows, the ETH/BTC ratio has just fallen to its lowest level in nearly 5 years, below 0.023.

The accelerated decline of Ethereum relative to Bitcoin is the biggest concern for its investors. At this rate, Ethereum may soon retest the 2019 lows around 0.016.

Due to the strong Put signals from the Ethereum price chart, further declines are likely.

Where will the Ethereum price head next?

The Ethereum price has recently broken below and failed to break through the key long-term resistance level of $2,140.

This has sent a strong Put signal indicating that the range of $2,000 to $4,000 from late 2024 has passed, and Ethereum may find a new range at lower levels.

Bears will watch for a retest of the next major support area around $1,500.

Given the uncertain macro backdrop, a retest of these levels seems quite likely.

Yes, the cooling of inflation in the USA provides the Fed with more room to adopt a slightly more dovish stance in 2025.

However, as the DOGE tightening policy and uncertainty from the Trump trade war begin to impact economic growth, the market's main concern remains the heightened risk of recession in the USA.

If signs of an economic recession continue to increase in the coming weeks, and the market is not sufficiently satisfied that the Federal Reserve can "save the situation", risk appetite may continue to deteriorate.

Since the Trump administration announced the establishment of a strategic Bitcoin reserve, Bitcoin's image as a safe haven and wealth storage asset has continuously strengthened, allowing Bitcoin to maintain good momentum, while Ethereum is unlikely to gain much favor.

Therefore, the fundamentals indicate that there is a high possibility of retesting the $1,500 level.

Is it a good time to Buy when Ethereum is low?

Thus, if Ethereum's price is destined to fall to lower levels, is this a good time for investors to Buy on the dip?

Yes, for investors willing to experience significant volatility in the short term, buying ETH on the dip may be a wise move.

Macroeconomic uncertainty will not last forever. Moreover, at some point, American Financial conditions may significantly ease, which means market liquidity will increase substantially.

The price of Ethereum performed strongly when the liquidity from the Federal Reserve was increasing.

Therefore, as the Federal Reserve stimulates the market, a strong rebound is expected. At the same time, in the long term, the Trump administration's supportive policy stance towards Cryptos should also benefit Ethereum.

The Trump administration is filled with ETH holders. Regulatory clarity will provide significant room for development in the Ethereum ecosystem in the coming years.

Traders must also remember that Ethereum remains the dominant DeFi chain and the most trusted smart contract blockchain in Cryptos, thus receiving support from Blackrock.

Although the current situation looks bleak and there is a lot of FUD in the market, the long-term outlook for Ethereum remains strong.

In the future, its biggest problem may still be the declining market share, as more agile competitors are attracting new users faster than Ethereum.

Nevertheless, due to Ethereum's position as the most trusted and decentralized blockchain for smart contracts, it remains the best candidate for large institutions looking to participate in DeFi.

Accumulating ETH as it approaches $1,500 and holding for at least a few years could be a great strategy.

Investors should not rule out the possibility of ETH reaching $10,000 by the end of Trump's four-year term.