SLV silver price analysis: Back to the shooting range?

SLV silver ETF, which tracks the performance of the silver bullion, is finding support along the channel that previously defined its price movements. The bulls are cautiously balancing the ETF bove the previous bullish channel as the market remains cautious over the persistent economic and geopolitical uncertainties. Nonetheless, optimism over a US-China trade deal have increased the risk appetite; further fueling the long-awaited corrective pullback. 

Investors are now keen on the Fed interest rate decision and the bank’s tone on future reductions. Similar to other non-yielding assets, silver and ots derivatives thrive in an environment of lower interest rates. 

SLV silver price headed back to where it all started 

In mid-April 2025, the SLV silver ETF entered a bullish trend as President Trump’s unorthodox trade policies heightened precious metals’ safe-haven appeal. For several months, the derivative soared to multi-year highs; moving within a path clearly defined by a bullish channel. 

In late September, economic and geopolitical uncertainties escalated, causing SLV silver price to burst the banks of the defining bullish channel to a fresh all-time high in mid-October. At that level, it had rallied by over 80% year-to-date, trading within the overbought territory for several weeks. 

While fear remains the key emotion driving the broader financial market, the long-awaited corrective pullback has set in. Besides, optimism over a US-China trade deal has improved the risk appetite. On the other hand, buyers who stayed on the sidelines during silver’s record rallying appear to be seeking exposure at the current price levels. This aspect, coupled with the softness of the US dollar, is offering support to SLV silver price above the previously defining channel. 

Investors are now keen on the Fed’s interest rate decision slated for release at the end of the central bank’s two-day policy meeting on Wednesday. On the one hand, the bank is widely expected to cut interest rates by a quarter percentage point for the second time in a row. 

However, the main focus will be on Jerome Powell’s tone on future reductions and state of the economy. A dovish tone would favour silver and other non-yielding assets.

SLV Silver ETF Technical Analysis

The SLV silver ETF has largely been trading above the 25-day EMA since mid-April, when the months-long uptrend began. However, at the start of the week, the price dropped past this crucial technical indicator amid the corrective pullback. 

Notably, the upper trend line of the previous bullish channel is offering support to the prices as they hover between the short-term 25-day EMA and the medium-term 50-day MA. 

In the short term, the bullish trendline will likely continue to offer support to SLV silver ETF as the bulls strive to maintain prices above the channel. This may place the asset within a range of between $42.03 and $44. A further pullback will return the prices within the bullish channel; activating the support along the 50-day EMA at $41.35.