Ethereum is currently under significant strain as relentless selling pressures and lackluster price movements continue to weigh heavily on its performance. Since January, bullish attempts to regain control have faltered, resulting in a steady decline in ETH’s value amidst a market fraught with fear and uncertainty. Without clear signs of recovery, investors holding long positions might face further challenges in the weeks to come.
The global financial landscape is marked by heightened anxiety due to escalating trade war fears and geopolitical tensions. This fraught macro environment has pushed investors away from high-risk assets such as cryptocurrencies, with Ethereum experiencing one of the most substantial impacts. The ongoing price weakness is indicative not just of technical mishaps but also reflects a widespread lack of confidence in a short-term recovery.
Prominent analyst Big Cheds recently indicated through a technical analysis that Ethereum is trading at $1,840 — a staggering decrease from its earlier peak of $3,400 this year. This drop signals the continuation of an overarching downtrend, placing ETH in lower demand zones which offer limited support.
Without robust intervention from bullish traders, Ethereum’s outlook remains pessimistic. Market observers are keenly watching whether the $1,800 mark will hold, or if deeper declines await as momentum continues to favor downward movement.
Ethereum Under Pressure As Key Levels Collapse
The position of Ethereum is increasingly critical as it loses essential support levels amid ongoing selling pressure. After briefly recovering above the $2,000 barrier in prior weeks, ETH has retraced below this significant threshold — a failure that deepens bearish sentiment and places bulls on the defensive. Each unsuccessful recovery attempt erodes investor confidence, and analysts are forecasting a deeper correction on the horizon.
The delicate situation surrounding Ethereum is noteworthy, given its pivotal role in the cryptocurrency ecosystem. A sustained downturn in ETH could not only impact its holders but also reverberate across the broader altcoin market and DeFi sectors, both of which depend on Ethereum’s price strength for momentum. The ongoing decline has amplified fears that a prolonged bear market may be on the verge of materializing.
In a recent update, Big Cheds discussed a bearish technical overview, highlighting the steep descent of ETH from its recent peak of $3,400 to the current level of $1,840. Cheds suggests that if the downward trend persists, attention should turn to the next accumulation zone, likely between $1,200 and $1,300 — a region that has historically served as a robust support base.
If Ethereum falls to this zone, it would indicate a correction of over 60% from its recent high, signaling a major breakdown in the price structure and testing the conviction of long-term investors. At present, bulls are tasked with defending the $1,800 level and striving to reclaim lost territory. Absent a shift in momentum, Ethereum’s road ahead appears increasingly daunting — a trend that may drag the broader market down with it.
Key Resistance Levels Remain Untouched
Currently, Ethereum is trading at $1,840, maintaining a position of weakness after failing to recover the 4-hour 200 moving average (MA) and exponential moving average (EMA), both hovering around the $2,100 mark. These indicators have been a source of significant dynamic resistance since December 2024, and the inability of ETH to trade above them clearly illustrates that bears continue to dominate the trend.
This ongoing weakness beneath the 200 MA and EMA has further embedded the bearish momentum, as bulls struggle to regain any meaningful ground in recent months. Until Ethereum manages to rise back above these critical technical thresholds, even attempts at recovery are likely to falter.
A successful reclaim above both the 200 MA and EMA could trigger a notable upward shift, potentially igniting renewed buying interest. However, prior to this, the focus must be on breaking the psychological barrier of $2,000 — a critical price point that has become emblematic of the ongoing struggle between buyers and sellers.
If ETH can surmount both the $2,000 and $2,100 resistances with substantial volume, it may herald the onset of a more vigorous recovery phase. Until that point, Ethereum’s price action remains vulnerable and tilted toward further declines.
Featured image from Dall-E, chart from TradingView
