Ethereum (ETH) is stuck in a tough range, falling below $1,900, and has sold more than $1,750 after putting up sales pressure above $1,900 and above $1,750. The broader crypto market is under stress, with fear dominating emotions and ETH not regaining momentum.
The slump is driven primarily by macroeconomic uncertainty and the escalation of the fears of a trade war that has shaken both the crypto and the US stock market. Some fear that the market is being prepared for a deeper revision, as investors are responsible for further volatility.
However, not all analysts are bearish. Some believe that recovery will be on the horizon in the coming months, especially if technical indicators begin to show strength. Top analyst Darn shared insights on the X, revealing that Ethereum has been integrated since its major sale and has formed a calm wedge pattern.
For now, ETH is at risk of further declines, but once this pattern unfolds, Ethereum could soon break out of integration range and start building momentum for recovery. The next few weeks will be important in determining whether ETH is stable or if there are more drawbacks.
Ethereum Falling Wedges Can Show Inversion
Ethereum has lost more than 57% of its value and creates a challenging environment for the bull as sales pressure continues. ETH is currently below multi-year support levels and is inverted to strong resistance. As long as Ethereum is below the $1,900-$2,000 range, the Bulls will struggle to regain momentum and will keep their bearish feelings intact.
The entire crypto market reflects this weakness, experiencing major breakdowns along with the US stock market. The fears and uncertainties of the world trade war surrounding the US President Trump’s policies have further encouraged the sale of risky assets. Since the US election in November 2024, the market has been lowered due to increased macroeconomic volatility and uncertainty. With the US stock market reaching its lowest level since September 2024, investors are questioning whether Ethereum is moving further.
Despite this dark outlook, there is optimism. Daan’s insights suggest that Ethereum is integrated from the major decline and forms a calm wedge pattern. This bullish formation can lead to a local reversal of trends when ETH breaks out and holds above resistance.
For this potential recovery to happen, ETH will need to penetrate over the white zone and regain $2,000. If this occurs, the Bulls can begin testing at a higher level and gain momentum for a broader market recovery. However, the ETH/BTC ratio remains close to multi-year lows, showing only a slight resilience these days. Sustained strength is required before an actual reversal occurs.
As Ethereum is still struggling, the next few weeks will be important in determining whether this falling wedge breakout will lead to a meaningful rally or if the downtrend will continue.
The Bulls struggle at around $1,900
Ethereum is currently trading at $1,900 after a few days struggling to fall below the important $2,000 mark. The bull has lost control and ETH has been at a lower level since October 2023, reflecting the wider market uncertainty and ongoing bearish sentiment.
With macroeconomic volatility and fears of trade wars becoming heavily heavy on risk assets, Ethereum continues to face sales pressure, making it difficult for the Bulls to build momentum for recovery. The longer ETH falls below $2,000, the stronger the resistance at this level, and further pushing buyers out of the market.
For Ethereum to avoid deeper losses, the Bulls need to regain the $2,000 mark as soon as possible and establish it as a new level of support. Breaks and holds above this threshold trigger a recovery rallies and allows ETH to test for higher resistance zones. However, losing the current level could make ETH vulnerable to another drop, potentially retesting support under $1,750.
The next few days will be important as the Bulls need to step in and defend current demand to prevent further downsides. If they do not, Ethereum can extend its weakness trend into deeper areas.
Dall-E special images, TradingView chart
