Ethereum price stuck under $1,600 despite strong U.S. job data as investors rotate into Solana and Cardano amid tech stock volatility.
Ethereum (ETH) Price Stuck Below $1,600 as Investors Pivot to Solana and Cardano
Ethereum (ETH) remains under pressure, trading below the $1,600 mark as of Thursday, April 17, while rivals like Solana and Cardano post notable gains.
Over the past week, ETH has underperformed relative to both Bitcoin and altcoins, with investor capital flowing into faster, lower-cost chains benefiting from the recent repeal of a key DeFi regulation by U.S. President, Donald Trump.
While Solana has surged on ETF approval news in Canada, Ethereum has been held back by concerns around controversial network upgrades and rising gas fees.
Layer-2 solutions have attempted to address these issues, but adoption has not been swift enough to offset the momentum building behind next-gen smart contract platforms like Solana, Hedera and Avalanche.
Data from CoinGecko shows ETH has declined 3% week-over-week, while Cardano and Solana gained 8% and 12% respectively.
This divergence highlights how capital rotation is weighing on Ethereum, especially with traders seeking alternative DeFi ecosystems that offer improved scalability and better yield opportunities.
However, Ethereum’s fundamentals remain intact. With its longstanding dominance in DeFi and NFTs, any reversal in sentiment could trigger a rapid recovery — particularly if macroeconomic tailwinds emerge.
US Unemployment Claims Could Boost Demand for ETH and Broader Crypto Markets
According to the latest report from the US Bureau of Labor Statistics, initial jobless claims fell to 215,000 in the second week of April, defying market forecasts that anticipated a modest increase to 225,000.
The figure marks the lowest number of new unemployment filings in over two months and signals strength in the U.S. labor market, despite volatile market swings linked to the ongoing US trade war
This continued labor market resilience is particularly noteworthy given heightened economic uncertainty and recent equity market volatility.
At the same time, continuing claims rose by 41,000 to 1.885 million, reflecting a degree of volatility in long-term unemployment trends. Filings under federal unemployment programs also nudged slightly higher, increasing by 34 to 548.
However, this remains among the lowest levels recorded since President Trump took office, largely due to severance-related delays in benefit eligibility following recent terminations by the Department of Government Efficiency (DOGE).
For Ethereum (ETH) and the broader crypto market, this data paints a compelling macro backdrop. With traditional tech stocks like NVIDIA, Apple, and Tesla posting multi-day losses — largely triggered by a $5.5 billion charge at NVIDIA amid worsening U.S.-China tensions — capital has begun rotating out of equities. Crypto markets, by contrast, have remained firm.
According to CoinGecko, total crypto market capitalization is holding above $2.7 trillion despite headwinds in other asset classes.
Historically, strong employment data has been a double-edged sword for risk assets. But in this case, resilient job numbers combined with a tech-led equity downturn could prompt investors to seek alternative growth opportunities — and undervalued crypto assets like ETH are well-positioned to benefit. With ETH still trading below $1,600, the improving macro narrative may soon trigger increased demand from savvy traders seeking assets with attractive entry points.
Ethereum Price Forecast: $1,400 retest likely unless bulls reclaim $1,700
Ethereum price action remains muted beneath the $1,600 mark, with the daily candle on April 17 closing at $1,582.15.
The Ethereum price forecast chart reveals ETH is firmly lodged in a bearish structure, trading well below its 50-day, 100-day, and 200-day simple moving averages (SMAs), currently at $1,903, $2,438, and $2,778 respectively. The wide gap between price and these long-term averages reflects strong overhead resistance and persistent selling pressure since mid-March.
Momentum indicators add weight to the bearish outlook. The Relative Strength Index (RSI) sits at 39.53, showing a mild recovery but still comfortably in bearish territory. Its failure to break above the neutral 50 zone signals weak buying interest and no real bullish divergence. Meanwhile, RSI’s signal line, at 36.22, closely tracks below, showing indecision without momentum follow-through.
Unless Ethereum breaks above $1,700 to challenge the 50-day SMA, downside risks prevail. A close below $1,560 could trigger a sharp move toward the next major support around $1,400. In this current setup, the path of least resistance remains to the downside.
The post Ethereum Price Forecast Today: Can Bullish US Unemployment Data Propel ETH Back to $2,000? appeared first on CoinGape.
