- Ethereum falls below $2,000, testing key support amid rising market uncertainty.
- RSI at 50.59 and MACD bearish momentum signal a strong possibility of further downside.
- Derivatives data shows a 64.35% volume surge, signaling strong trader activity.
Ethereum ($ETH) faces uncertainty as its price forms a key technical pattern known as the ascending triangle. At press time, Ethereum ($ETH) maintained its value at $1,916.41 while facing an 8.42% downward shift in market position over the past seven days.
The market downturn has positioned ETH near vital support zones, raising fears of further price declines. ETH saw a sharp decline after failing to hold above $2,150, leading to a market pullback toward $1,761.
The ascending triangle pattern, analyzed by Ali Martinez, suggests a bearish outlook for ETH. Ethereum faces significant risk as it struggles to sustain bullish patterns. The ascending triangle pattern suggests Ethereum could drop to $1,000, despite trading at $1,916.41.
Ethereum’s Price Action: Can Bulls Regain Control?
The Ethereum price attempted to reach the $2,150 resistance but met resistance, which triggered a swift price drop. ETH declined to $1,761 following the breakdown before it recovered slightly. ETH’s price action remains bearish, struggling against resistance barriers in the market.
Ethereum has established a support point at $1,761 and meets stronger opposition between $2,138 and $2,159. Ethereum bulls must break through this resistance to regain upward momentum.
The Moving Average Convergence Divergence line is at 2.82, which is below the signal line at 3.73, indicating bearish momentum. Additionally, the rising negative histogram at -0.91 also indicates increasing bearish pressure, suggesting that downward momentum may continue unless a reversal occurs.
The RSI (Relative Strength Index) is at 50.59 which indicates neutral market conditions. But based on the direction of the chart, there is a huge possibility that the bearish trend is likely to continue.
Related: Ethereum Faces Bearish Pressure as Key Levels Break: Report
Ethereum Derivatives Data: Are Traders Bearish?
Ethereum derivatives saw a 135.98% surge in options trading, signaling increased market speculation. Despite a 5.02% drop in open interest, data suggests traders are closing active positions. The Binance and OKX trading platform metrics show traders favoring long positions at 4.55 and 4.9, respectively, but these high ratios suggest potential selling risks if Ethereum’s price declines.
According to the latest data, short position liquidations have taken over the market, which shows bears experiencing recent relief. A sudden spike in long liquidations would push the ETH prices to drop further reinforcing bearish market conditions.
Final Verdict: Can Ethereum Hold or Will It Collapse?
Ethereum is at a crossroads. Bulls must break through resistance at $2,138–$2,159 to build momentum, though a slight recovery has occurred. The cryptocurrency market will likely continue downward, potentially approaching $1,761 and even dropping to $1,000 if ETH fails to break resistance. Ethereum market participants must observe price behavior because the upcoming movement may establish the platform’s trend for several weeks.
