Ethereum prices formed a bearish engulfing candlestick on Monday, falling more than 6% amid a Bitcoin-led market-wide selloff.
summary
- Ethereum prices fell more than 6% on Monday amid widespread turmoil in the crypto market.
- Multiple bearish patterns seem to point to the possibility of further declines in the coming weeks.
- Ethereum ETF has experienced outflows for 5 consecutive weeks.
According to data from crypto.news, Ethereum ($ETH) Price fell 6.3% to $1,855 in early Asian time on Monday, before stabilizing at $1,874 at press time. Ethereum prices plunged amid a broader market selloff as the threat of new US tariffs on all trading partners and potential military escalation in the US-Iran conflict undermined investor appetite for the crypto asset.
What should be noted is Bitcoin ($BTC) fell below the market bellwether psychological support level of $65,000, wiping out millions of leveraged long positions, and the shock extended to other major crypto assets such as Ethereum. According to CoinGlass data, approximately $108 million worth of $ETH Long positions were liquidated within the last 24 hours.
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On the daily chart, Ethereum price formed a bearish engulfing candlestick amid today’s decline. The market’s largest altcoin is down about 45% from its yearly high so far and 62% from its all-time high of $4,946 hit in August 2025.
$ETHThe price action of formed a bearish pennant pattern characterized by a flag-like pole and a triangle formation at the bottom. Breakouts from such patterns historically come with significant downside risk.
Ethereum price forms bearish pennant pattern on daily chart — February 23 | Source: crypto.news
At the same time, zooming out on the chart also shows the formation of a multi-month descending parallel channel, another bearish pattern in technical analysis.
Based on these technical indicators, if Ethereum respects the lower bound of the descending channel pattern, Ethereum could fall to $1,450. This means losing the $1,500 level, which is an important psychological support.
A breakout of the $1,500 psychological floor would likely represent a significant structural failure and trigger a series of stop losses. Given the current macro-driven volatility, liquidity depletion at low levels could lead to a rapid capitulation in the coming sessions.
$ETH investors became bearish
Bearish predictions for Ethereum could gain further momentum due to weak demand for exchange-traded products in recent weeks. Nine spot Ethereum ETFs have recorded five consecutive weeks of outflows, totaling about $1.38 billion, according to SoSoValue data.
Meanwhile, the weighted funding rate, which measures the cost of holding a short position, has fallen deep into red territory, suggesting that Ethereum bears are betting on further price declines while paying a premium to long holders.
Ethereum’s weighted funding rate has become extremely negative — Source | Coinglass
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Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
