Ethereum price has broken through a major support level and is below a major high timeframe zone, indicating increasing downside pressure that could signal the early stages of a deeper bearish cycle.
summary
- ETH is currently losing momentum and sitting at the lower end of its trading range
- Any pullback is likely to form a lower high within a downtrend
- Market structure suggests further downside towards the $2,100 support zone
Ethereum (ETH) price action has entered a decisive phase as the market has fallen below the key structural support zone that previously supported its bullish momentum. Ethereum is currently trading below the $3,500 area, with several higher time frame levels turning into resistance and the broader trend starting to resemble the early stages of a bear market.
Important technical points of Ethereum price
- Ethereum has fallen below key high support and is currently trading below $3,500.
- The $3,500 level turned into resistance along with the 200-day moving average.
- Downside price targets include $2,600 for a pullback and $2,100 as the low of the broader range.
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ETHUSDT (1D) chart, source: TradingView
Ethereum’s recent fall below the $3,500 zone is one of the most important structural changes of the current cycle. This level previously acted as strong higher timeframe support, but has now turned into resistance. The 200-day moving average is also in line with this region, reinforcing the bearish trend and confirming that ETH is trading below key trend indicators.
Prices have already fallen at an accelerated pace since the collapse, pushing ETH towards the $2,600 area. This zone is historically reactive and can trigger an oversold rally. However, such a pullback could only form a lower high within a broader bearish structure. Ethereum has recorded a series of lows and highs, which is the hallmark of sustained downward momentum.
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Even if a rescue rebound from $2,600 occurs, the technical situation still favors further downside. The bigger target from a structural perspective is staying low in the $2,100 range. Ethereum is now accepted within a new lower range, opening the door for the price to rotate towards the bottom of that range. The market often moves between range highs and range lows, and ETH appears to be following suit.
A continued decline towards $2,100 will be a retest of the key macro support zone. This also applies to the pattern in which a deeper corrective leg forms after many failed attempts to restore the broken support. While traders may expect short-term upside from oversold conditions, such a move would be corrective rather than trend-changing in the current environment.
What to expect from future price trends
A short-term bounce is possible from $2,600, but it is likely to form lower highs before the next pullback. If Ethereum continues to trend below $3,500, it will likely head toward lows in the $2,100 range. Only a strong restoration of resistance will counter the bearish outlook.
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