Ethereum May Lose Crucial Support as Downward Trend Strengthens

Ethereum (ETH) remains trapped under the important $3,000 mark, a level it’s been unable to break above since early February. It’s taken a hit of over 9% in the last week, signaling mounting bearish pressure.

Though the price hasn’t plunged, technical signs hint that momentum is turning negative. The big question is whether the current support will hold or if ETH could face a deeper slide soon.

Bearish Pressure Builds Amid Weakening Trend Indicators

Ethereum’s current price action can be better understood through the lens of the Average Directional Index (ADX), which gauges trend strength regardless of direction. A drop from 27.64 to 20.83 in the ADX implies that the prevailing trend is weakening, potentially transitioning into a period of consolidation or choppy trading.

Backing up this view, the directional indicators lean toward a downward trend. The +DI, which tracks upward momentum, dropped significantly from 26.57 down to 17. Meanwhile, the -DI rose to 26.22, showing stronger selling activity. This shift in power toward the sellers points to growing bearish strength, and unless buyers push back soon, Ethereum could continue to fall.

RSI Indicates Fading Buying Interest

The Relative Strength Index (RSI), another key momentum tool, is sending a cautious signal. It briefly rose above 60 but has now fallen sharply to 46.2, settling back in neutral territory. RSI measures how quickly and strongly prices move, with levels above 70 often suggesting an overbought market, while those below 30 may point to undervaluation.

Ethereum’s RSI sitting near 46 doesn’t yet suggest a reversal but reflects a cooling off in buying enthusiasm. The retreat from the latest high points to weakening upward momentum, which could let sellers assert themselves. A continued drop of the RSI toward 30 would likely confirm a deepening bearish phase, which might bring about more substantial price corrections.

Resistance Holds While Support Zones Are Tested

Price action confirms this cautious stance. Ethereum recently attempted to push past the $2,679 resistance level but failed to break through, reinforcing the grip of selling pressure. On the downside, key support levels lie at $2,479, $2,386, and $2,326. Each serves as a potential floor where buyers might step in to stabilize prices.

Should these support areas break, declines might pick up pace, and traders will focus heavily on what comes next. But if Ethereum can clearly break above $2,679, it could change everything. That move might reignite buyer confidence and set a course for $2,790 or above. It would also likely push the EMAs into a bullish formation, hinting that the downtrend could be ending.

The path forward remains uncertain until the shift actually happens. Traders should monitor these critical markers carefully, as they’ll influence ETH’s price direction in the near future.

What This Means for Ethereum?

Ethereum is facing a tough moment right now. The weakening momentum and faltering trend hint at a higher chance of prices slipping further. While it’s not set in stone yet, it looks like bearish forces are gaining ground as Ethereum has trouble pushing past important resistance points. Support zones will be critical in the days ahead; whether they hold or break will likely determine Ethereum’s next phase.