Ethereum has recently lost momentum, slipping below a key upward trend line in the short term. This drop and resulting price weakness have reinforced a bearish mood in the market. Analysts note that sellers have taken control of Ethereum in the short term, but a retest of certain levels could revive hopes for a recovery.
Short-term sellers dominate markets
The latest data reveals a breakdown in Ethereum’s short-term upward structure. According to an ETH/USD chart shared by More Crypto Online, the price has fallen to the $2,108 range, failing to sustain the brief upward movement seen after the April lows. This breakdown has cemented sellers’ dominance in the near term.
The same chart also highlights that Ethereum is now trading below a significant descending trend line that began after its previous major peak between $4,700 and $5,000. Despite earlier attempts, the price has not managed to break above this line.
Analysts indicate that bears are trying to initiate the “C-wave” in a short-term downward trend. However, the fact that the decline from April has been limited to just three waves suggests a possible “B-wave” correction could still materialize.
Key support and resistance zones
Ethereum faces prominent resistance between the $2,655 and $3,236 range. This zone encompasses the 100%, 123.6%, 138%, and 161.8% Fibonacci extension levels. Above this, the $3,332 to $3,970 band forms another broad resistance area for ETH prices.
Despite these resistances, Ethereum now needs to reclaim the $2,200–$2,300 levels and break above the declining yellow trend line to shift the short-term outlook. Otherwise, the current downward pressure looks set to persist, likely keeping prices suppressed.
On the downside, the $1,650–$1,800 range stands out as a critical support area. Should Ethereum fail to regain the $2,200–$2,300 region, analysts believe the coin could be pushed toward this main support by a sharper selling wave.
Possible reversal signals emerge
In contrast, some alternative technical analyses point to a potential positive scenario. According to the analyst Ray, Ethereum may be forming a potential “bullish reversal” pattern after facing recent downward pressure.
Ray highlights that, although Ethereum looks weak in the short term, there are signs that a recovery is possible. However, this would require a clear bullish breakout. A decisive move above a strong resistance zone could be crucial for buyers to regain control of the market.
This perspective, alongside the dominant bearish scenario, hints at the possibility of a positive turnaround for ETH. If the price can overcome specific resistance points, buyers could once again lead the direction of the market.
In conclusion, Ethereum is currently trading below key technical levels. For a sustained upward trend to develop again, it is essential for resistance zones to be broken decisively. If not, the short-term bearish pressure is expected to continue.
