Ethereum’s recent price action has sent shockwaves through the crypto community as the second-largest cryptocurrency dropped below the significant $2,800 support level for the first time since December 3, 2025. The downturn, which saw ETH falling over 10% in just three days, has left many investors reeling, with the current trading price hovering around $2,700.
The breakdown below $2,800 was not merely a minor fluctuation; it was a breach of a crucial horizontal support line that had provided protection against further declines. This pivotal moment triggered bearish signals across multiple technical indicators, prompting concerns about potential price targets. Veteran trader Peter Brandt highlighted a symmetrical triangle breakdown on Ethereum’s chart, stressing that the responsibility now rests squarely on the bulls to regain control.
The technical analysis reveals that both descending and symmetrical triangle patterns are ominously converging at a price target of $2,100, suggesting a daunting potential decline of approximately 22% from current levels. This situation creates a climate of uncertainty for traders as they navigate these critical support thresholds.
Key Support and Resistance Levels
Looking ahead, Ethereum’s immediate support now rests at $2,500, coinciding with its 200-week simple moving average. Historically, this long-term moving average has been a reliable support point during previous market cycles. If this level fails to hold, the path may open up toward the $2,450 region, heightening bearish sentiments.
Traders are closely monitoring $2,710 and $2,600 as vital support levels, with any decisive breakdown below these points likely to escalate selling pressure. Some analysts indicate that the $2,700 price point is a “do or die” level for bulls, signifying that failing to hold here could cement bearish control over the market.
Further complicating matters, the net unrealized profit/loss (NUPL) indicator for Ethereum has transitioned from the “anxiety” zone into the “fear zone,” reminiscent of conditions preceding significant bear markets in 2018 and 2022. This indicator measures the balance between unrealized profits and losses held by ETH investors, suggesting a growing trepidation among market participants.
The decline in Ethereum’s relative strength index (RSI), which has dropped from 68 to 34, also paints a picture of weakening momentum and increasing bearish divergence with the ongoing price action.
Market Sentiment and Future Prospects
As Ethereum’s price faces these critical junctures, analysts remain divided on the potential for a rebound. Some posit that if ETH can stabilize above $2,600, there may be an opportunity for a bounce back toward $3,050 and potentially $3,150. However, for a meaningful reversal to take shape, Ethereum would have to reclaim levels above $3,350 with significant volume.
On the observer’s radar is the downward trend of ETH compared to Bitcoin (ETH/BTC), reaffirming a sentiment of relative weakness that could keep volatility at heightened levels in the near future.
In this tumultuous landscape, traders who opened positions at the $2,600 mark are carefully observing price developments, deliberating on whether to augment their investments depending on upcoming market momentum.
With technical indicators leaning bearish, and market sentiment shifting into anxious territories, Ethereum’s path in the coming weeks appears uncertain, compelling traders to remain alert and adaptive.
