Ethereum continues to trade under significant pressure as the daily chart reflects a clear bearish trend. The market structure consistently shows falling highs and falling lows, indicating a sustained seller advantage. In addition to weak price action, technical indicators and derivatives data also point to a decline in confidence among traders.
Technical structure suggests continued downside risks
The price movement showed a strong rebound around the 0.5 Fibonacci area around $3,347, strengthening the macro resistance zone. However, the seller quickly regained control and $ETH The bearish momentum accelerates below the $2,512 area. This breakdown confirmed the continuation of the trend and pushed the price into the lower range.
Additionally, the Ichimoku cloud remains overhead, highlighting sustained resistance and limiting any bullish attempts. Current support prices are between $1,960 and $1,900, with buyers showing early reaction.
$ETH Price trend (Source: Trading View)
However, analysts emphasize that $1,740 is an important structural floor. Therefore, a break below that level could pave the way for the $1,600 to $1,500 demand zone.
On the positive side, resistance appears to be layered and difficult to regain. The $2,234 to $2,512 range forms the first barrier, combining Fibonacci levels and cloud resistance. Additionally, $2,968 remains the mid-range ceiling where previous rallies failed.
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significantly, $ETH It would need to regain $3,347 to shift the overall trend to a bullish outlook. Momentum indicators support the bearish view, as ADX near 55 indicates a strong trending environment. Sellers maintain directional strength as ADX rises while price falls.
Open Interest and Spot Flows Show Caution
Derivatives activity provides further insight into market sentiment. Open interest continued $ETHThe initial expansion in , which rose steadily as traders increased their leveraged exposure.
However, recent price weakness has led to deleveraging, reducing open interest to $23 billion. Therefore, traders appear to be more cautious and less willing to hold aggressive positions. This cooling trend often reflects uncertainty rather than renewed confidence.
Spot flow data also show mixed behavior. Previous surges in inflows suggested foreign exchange deposits and short-term selling pressure. However, prolonged outflows subsequently meant that investors moved coins off exchanges, reducing the supply of instant sells.
Additionally, intermittent spikes in inflows signaled profit-taking during the rebound. Recently, the flow has stabilized around neutral levels, indicating indecision. As a result, the market is currently awaiting clearer direction as participants balance accumulation and risk reduction.
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Technical outlook for Ethereum price
Ethereum’s key levels remain well defined as the market navigates a strong bearish structure.
Top level: $2,234 to $2,512 stands as an immediate resistance cluster that coincides with the previous breakdown structure and Fibonacci confluence. A sustained move above this zone could open room for $2,968. On top of that, $3,347 marks a macro resistance level that needs to be broken to confirm a broader trend reversal.
Lower price level: $1,960 to $1,900 serves as the first support band and current reaction zone. Below that, $1,740 represents major structural support on the daily chart. A break below $1,740 could accelerate the selling towards the $1,600-$1,500 demand area.
Upper limit of resistance: The $2,512 level, reinforced by Ichimoku cloud overhead, acts as a key barrier to reversing the medium-term recovery momentum.
The technical structure shows that Ethereum is trading firmly within a descending channel, reinforced by ADX rising around 55. This setting indicates a strong trend situation rather than a consolidation. The rally may face selling pressure until buyers reclaim the $2,234-$2,512 range.
Will Ethereum recover?
Ethereum’s near-term direction will depend on whether the bulls can defend the $1,900 zone and prevent a break towards $1,740. If the defense is successful, price could once again challenge the low resistance cluster. However, failure to hold support risks extending the decline to a deeper demand zone around $1,600.
For now, Ethereum is trading in a decisive area. Momentum favors sellers, but support remains within reach. The next leg will depend on whether buyers step in with conviction or allow the broader downtrend to continue.
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