Since March, Ethereum ($ETH) Bulls are struggling to break out of the $2,400 resistance level. Although Bitcoin (BTC) was able to overcome major psychological resistance at $70,000 and $80,000, $ETH It failed to gather similar momentum and rise to the $2,700-$2,900 levels.
Looking at the higher time frame moving averages reveals a bearish trend. $ETH The trend was seen as the price fell below 200DMA and 200WMA. The latter in particular is a notable demarcation line for long-term trends and has acted as both support and resistance many times.
The 111DMA at $2,186 is expected to be support, but the trend has been bearish since September 2025.
The bearish price trend appeared to be inconsistent with long-term market conviction. For example – Ethereum’s total stake has been increasing since the beginning of 2026, according to CryptoQuant analyst Rei Researcher.
This trend has now slowed down in May as users restructured their portfolios or withdrew funds for liquidity. Nevertheless, despite lackluster price performance, this year’s uptrend shows long-term confidence.
No second wind for bulls
Additionally, analyst Ali Martinez pointed out in a post on X that the TD Sequential indicator is showing a sell signal. $ETH. In the past, weekly signals from the indicator were followed by decisive price movements.
For example, a sell signal from this indicator in August 2025 preceded a correction of 63%.
Although price trends suggested caution, the MVRV Market Extremes indicator showed that Ethereum has been significantly undervalued since February. It should be noted that it was also underestimated in March and April 2025.
However, the steep slope did not stop $ETH The price declined after retesting the realized price of $2,036. One more such rejection is likely before MVRV reaches extreme lows, which tend to indicate long-term market bottoms.
Investors should be wary of further price declines. The moving averages suggested an ongoing downtrend, and the weekly TD sequential also agreed with that hypothesis.
Final summary
- The increase in total stakes on Ethereum indicates a long-term stable market confidence.
- This long-term belief is not enough to stall $ETHHowever, there is a downtrend as another sharp correction could be coming.
