Ethereum Faces Increased Downside Pressure Amid Market Weakness

News

  • ETH struggles below $2,600 support, facing bearish pressure with risks of further downside unless buying demand strengthens.
  • Resistance near $3,749.50 triggered rejections, reinforcing ETH’s downward trend as market sentiment remains weak.
  • A potential reversal depends on reclaiming lost levels, but broader market weakness could push ETH lower toward $2,114.

The price of Ethereum (ETH) fell precipitously, reaching $2,511.13 in 12 hours. Before falling to a low of $2,150, the price began at $2,869.69 and briefly peaked at $2,872.17. This decline led to a loss of 12.48%. The movement aligns with broader market weakness, reinforcing a bearish sentiment across the crypto space.

Key Supply and Demand Zones

The price struggled to break past a major supply zone near $3,749.50, leading to multiple rejections. This resistance area played a crucial role in ETH’s downward momentum. Without strong buying pressure, the price failed to reclaim previous support levels and continued its descent. 

Source: CrediBull Crypto

Additionally, a key demand zone near $2,600 provided temporary support but failed to hold, allowing further declines. ETH briefly rebounded near $2,114.47, aligning with historical support where buyers have previously stepped in. However, market sentiment remains uncertain.

Bearish Structure and Trend Confirmation

ETH’s price action shows lower highs and lower lows, confirming a bearish trend. The breakdown from the previous consolidation range converted support into resistance, further limiting upward potential. Analyst CredibleCrypto noted that while some lows were taken, a deeper retest on spot exchanges remains likely. Open interest remained unchanged, signaling that traders are still positioned for further moves.

Besides, the failure to hold the $2,600 support suggests a shift in sentiment. Consequently, ETH risks further downside unless demand strengthens significantly. The price action reflects market-wide weakness, as ETH struggles to gain momentum. Without a solid reclaim of lost support levels, ETH could revisit $2,114.47.

Potential Reversal or Continued Downside?

Ethereum’s near-term outlook hinges on price behavior around key levels. If buying pressure increases, ETH could attempt a reversal. However, resistance remains at the previous support levels. Hence, reclaiming the $2,600 level is crucial for bullish momentum. Otherwise, a gradual decline remains possible.

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