Ethereum (ETH) is posting a modest rebound around the $2,245 mark, but it has yet to escape its medium-term downtrend. With the sharp decline in U.S. tech stocks, monetary policy uncertainty, and concerns over capital outflows from the virtual asset market all overlapping, the sustainability of the rebound is being put to the test.

Short-term technical indicators show signs of easing sell pressure, but with major moving averages still sitting above the current price, analysts say it is too early to judge a trend recovery.

Ethereum Price Movement: Up 0.32% Daily, Down 12.75% Monthly

On the 7th, Ethereum recorded $2,245.92 on the daily chart, up 0.32% from the previous day's close. Its 7-day return stands at 0.02%, essentially flat, while its 30-day return reaches negative 12.75%. Although the price has rebounded in the short term, the magnitude of the increase is too limited to resolve the downward pressure accumulated over the past month.

Shock from U.S. Stock Markets... Aftermath of Nasdaq's 5.5% Plunge

In particular, the risk-off movement that began in U.S. stock markets is spreading to the virtual asset market, weighing on Ethereum's price recovery.

In a report on the global financial market outlook published on the 6th, Reuters cited selling in U.S. tech stocks, inflation risks, and geopolitical tensions as major sources of instability. It reported that the U.S. Nasdaq index plunged 5.5% on the 5th, wiping out roughly $2.5 trillion in market capitalization, with concerns over artificial intelligence (AI) investment costs and the possibility of tighter regulation pressuring the market.

This situation provides important context for interpreting Ethereum's rebound. While virtual assets have a trading structure separate from traditional stock markets, they can be affected by institutional investors' adjustments to risk asset allocations and changes in liquidity. In particular, when investment sentiment toward U.S. tech stocks deteriorates, selling to secure cash can also emerge in the virtual asset market. Even if Ethereum succeeds in a short-term technical rebound, expanding volatility in U.S. stock markets could make it difficult to sustain the upward momentum.

Bloomberg: "Bitcoin Falls to 7-Week Low... Ethereum Also Plunges 8%"

In a report on the 5th, Bloomberg said that as the tech stock plunge spread across risk assets, bitcoin fell to a seven-week low and Ethereum also dropped about 8%. Bloomberg explained that disappointment with semiconductor companies' earnings outlooks and the possibility of heightened U.S. congressional oversight of the AI industry were behind the contraction in investment sentiment.

Ethereum's recent price movement can be seen as a limited recovery process following this shock. However, the mere fact that prices have rebounded somewhat is insufficient grounds to conclude that the market's selling pressure has fully eased.

RSI Rises to 41.43... Signals of Rebound and Further Correction Coexist

Technical indicators also confirm this duality. Ethereum's relative strength index (RSI) on the 6th rose to 41.43 from the previous 39.97. The RSI measures the relative strength of price gains and losses over a given period. The current market can be assessed as a zone where rebound potential and further downside risk coexist.

Rather than focusing on temporary price increases, it is necessary to also check the recovery of major moving averages, changes in trading volume, and whether the macroeconomic environment stabilizes.

[Some AI assistance was used in producing this article. This does not constitute a recommendation to buy or sell any specific asset; investment decisions and responsibilities rest with the investor.]