In recent months, Ethereum has faced significant downward pressure, echoing Bitcoin’s struggles as investors rush to liquidate their holdings. The prevailing sentiment among traders appears to be one of caution as lower price levels loom on the horizon. Analysts are largely in agreement that Ethereum’s price may be due for a major retracement before any recovery can be charted.
Technical Analysis Suggests Critical Levels Ahead
According to a detailed analysis shared on TradingView, crypto analyst Melikatrader points to a concerning pattern that could spell trouble for Ethereum. The digital asset is currently consolidating within a large symmetrical triangle pattern, closely hovering beneath the $2,000 mark. This lack of upward momentum, particularly around the $1,977 level, suggests that bearish sentiment may have firmly taken hold.
The analysis indicates that Ethereum’s price has been compressing between two converging trend lines, leading to an impending breakout or breakdown. As the price approaches the triangle’s apex, it is critical that Ethereum makes a decisive move to establish its next direction.
Currently, the expected trend appears bearish. Analysts recommend that traders watch closely for a breakdown below the triangle’s support line at $1,912. Should this level fail to hold, it could signal a swift decline to lower levels.
In the event of a breach of the support line, Ethereum would likely be tested at the next significant level—approximately $1,781—which is positioned as the final target of the anticipated triangle breakdown. This potential target underscores the urgency for traders to remain vigilant.
While the current price action has been turbulent, breaking the lower trendline could lead to a retest that may set the stage for further declines. Analysts advise maintaining a keen eye on these technical indicators and managing positions carefully. The situation remains fluid, and a clear confirmation of the trend will be necessary before any bullish sentiment can resume.
