
ETH Faces Bearish Pressure: Struggles Below Key Support
The price of Ethereum recently dropped sharply, falling from $2,869.69 to a low of $2,150, reflecting a 12.48% decline. This price movement aligns with broader market weakness and has reinforced the bearish sentiment in the cryptocurrency space. Ethereum’s failure to break past key resistance levels has kept it on a downward trajectory.
Resistance Near $3,749.50 Triggers Rejections
Ethereum has struggled to break past a major resistance zone near $3,749.50. This level has consistently triggered rejections, preventing Ethereum from gaining upward momentum. As a result, ETH’s price has remained in a downtrend, and without strong buying pressure, the price has failed to reclaim previous support levels, reinforcing the bearish outlook.
Potential for Further Downside: Key Levels to Watch
Ethereum’s price recently tested a key demand zone near $2,600, which provided temporary support but ultimately failed to hold. The price briefly rebounded near $2,114.47, which aligns with historical support levels where buyers have previously stepped in. However, given the current market sentiment, Ethereum risks further declines unless demand strengthens significantly.
Key Supply and Demand Zones for Ethereum
Ethereum’s price action is heavily influenced by supply and demand zones, which help define key levels for potential reversals or continued declines. The following zones are critical for understanding ETH’s near-term outlook:
- Supply Zone: Resistance near $3,749.50, where multiple rejections have occurred, continues to limit ETH’s upward potential.
- Demand Zone: The $2,600 zone, which provided temporary support, but failed to hold, is crucial in determining the future direction of ETH’s price.
- Historical Support: The $2,114.47 level has historically acted as support, with buyers stepping in at this point during previous declines.
Bearish Trend Confirmation and Market Sentiment
Ethereum’s price action is characterized by lower highs and lower lows, confirming the bearish trend. The breakdown from the previous consolidation range has converted support into resistance, further limiting upward movement. Market analyst CredibleCrypto has noted that while some lows have been taken, a deeper retest on spot exchanges is still likely. The failure to hold the $2,600 support level suggests a shift in market sentiment, and unless buying demand strengthens, ETH could continue its decline.
Open Interest and Market Sentiment
Open interest has remained largely unchanged, indicating that traders are still positioned for further moves in Ethereum’s price. This suggests that the broader market sentiment remains weak, and Ethereum could face additional downside pressure if the current trend continues.
Can Ethereum Reverse its Downtrend?
Ethereum’s near-term outlook will depend on its ability to reclaim key levels. If buying pressure increases, ETH could attempt a reversal and move toward higher price levels. However, resistance remains at the previous support levels, especially near the $2,600 zone. To turn bullish, Ethereum must first reclaim this level, but without solid buying demand, a gradual decline remains a likely scenario.
Conclusion: What’s Next for Ethereum (ETH)?
Ethereum’s price remains under significant bearish pressure, struggling below the key $2,600 support level. The failure to break past resistance near $3,749.50 and the inability to maintain support at $2,600 suggest that the price could continue to decline. However, if buying demand strengthens, Ethereum may have a chance at a reversal. Traders and investors should closely monitor these key price levels as the next few days could determine Ethereum’s price trajectory.