Ethereum’s Bearish Momentum Signals Potential Further Decline Ahead

Ethereum's technical picture darkens as bearish patterns emerge across multiple timeframes.

Market Structure Breakdown

Key support levels shattered as selling pressure accelerates—traders watch for the next leg down. The momentum shift caught many off guard, proving once again that crypto markets humble even the most confident analysts.

Technical Indicators Flash Red

RSI readings dive into oversold territory while volume spikes on downward moves. Each bounce gets sold into, creating a classic staircase decline pattern that veteran traders recognize all too well.

Institutional Response

Whale wallets show distribution patterns as large holders lighten positions. Meanwhile, the perpetual funding rate turns negative—speculators finally paying to bet against ETH instead of blindly longing it.

Where's the bottom? Nobody knows for sure, but one thing's clear: in crypto, the only thing that drops faster than prices are traders' excuses for why they didn't see it coming.

Ethereum Price Recovery Stalls

Following several days of downside pressure, ethereum attempted a rebound after finding support around $4,065. The recovery was initially encouraging, with ETH moving back above $4,150 and $4,220, sparking hopes of a more sustained rally.

However, the upward momentum lost steam NEAR the $4,350–$4,380 zone. This level aligns with both the 100-hourly simple moving average and the 61.8% Fibonacci retracement of the drop from $4,580 to $4,065. A bearish trend line has also formed around $4,355, reinforcing the resistance zone.

As of writing, Ethereum is trading under $4,355, signaling that bears are still defending higher levels. Unless the price can decisively close above $4,380, the recovery may remain limited in the short term.

Technical Picture: Resistance Remains Heavy

The first major resistance to watch is at $4,380, followed by $4,460. If Ethereum breaks above $4,460, momentum could build toward $4,500, a psychological level that has historically attracted both buyers and sellers. Beyond that, $4,550 and $4,565 serve as potential near-term targets.

On the downside, initial support lies at $4,240, followed by the $4,200 zone. A drop below $4,200 could open the door to further declines, with $4,120 and $4,050 as key levels to watch. If selling pressure intensifies, ETH could even revisit the $4,000 handle, which acts as a critical psychological support zone.

Indicators Send Mixed Signals

Momentum indicators highlight the market’s indecision. The hourly MACD has been losing momentum in the bearish zone, reflecting limited buying pressure. Meanwhile, the Relative Strength Index (RSI) is hovering slightly above 50, showing a balance between bulls and bears but with no strong directional bias.

This mixed setup suggests Ethereum is consolidating, waiting for a decisive breakout. Until then, traders should prepare for choppy price action within the $4,200–$4,380 range.

Market Sentiment and Broader Context

Ethereum’s latest price behavior also mirrors broader trends in the cryptocurrency market. Bitcoin, which often sets the tone, has faced resistance in recent sessions, limiting bullish enthusiasm across altcoins. The overall risk environment in global markets has also been cautious, with traders watching economic data and central bank policy signals that influence risk appetite.

For Ethereum specifically, fundamentals remain strong, with growing adoption of Ethereum-based decentralized applications (dApps), rising transaction volumes, and continued developments in tokenization and staking. However, in the short term, technical barriers are dictating price movements more than fundamentals.

• Major Resistance: $4,380, $4,460, $4,500

• Major Support: $4,220, $4,200, $4,120, $4,050

Outlook

Ethereum’s price action suggests that the recovery remains fragile. The inability to overcome $4,380 could keep the market under pressure, with another dip possible toward $4,200 or lower. At the same time, a breakout above $4,460 WOULD shift the momentum back in favor of buyers.

For now, traders and investors should remain cautious and closely monitor these technical barriers. With Ethereum consolidating under major resistance, the next decisive MOVE is likely to set the tone for its short-term trajectory.