Ethereum Faces Bearish Pressure: Analysis Suggests Drop Toward $2,400

Ethereum's Bearish Trajectory Intensifies Amid Market Uncertainty

Ethereum, the world's second-largest cryptocurrency, has experienced an extended decline, putting bulls on the defensive below the $2,650 threshold. Technical analyses point toward continued bearish sentiment, raising concerns about a potential slide to major support zones.

Current Market Standing

In recent trading sessions, Ethereum (ETH) has remained under considerable pressure after failing to maintain levels above $2,800. The asset continued to register lower highs, slipping below critical support at $2,650 and struggling around the $2,600 mark. At the time of writing, the ETH/USD pair is navigating a precarious territory, and analysts highlight the formation of a bearish chart pattern influencing price direction.

Bear Flag Pattern Suggests Further Downside

Technical experts have identified a pronounced bear flag pattern in Ethereum’s price charts. This formation, typically regarded as a negative continuation signal, has emerged following the latest bearish impulse from the $2,900 zone. The failure to initiate a sustained reversal rally adds weight to the view that further losses may be imminent.

Support and Resistance Levels

Several significant levels have come into focus as Ethereum trades below its 100-hourly simple moving average. Immediate resistance is noted near $2,580, with further hurdles at $2,650 and $2,720. These barriers coincide with the upper boundaries of the bear flag, while the $2,500 and $2,450 levels now act as pivotal short-term support. If these supports falter, eyes may turn toward the next key area at $2,400.

Technical Indicators Signal Selling Momentum

The hourly Relative Strength Index (RSI) for the ETH/USD pair remains below the neutral 50 level, reflecting subdued buying activity and the dominance of bears. In addition, the MACD (Moving Average Convergence Divergence) continues to indicate a negative trend, further confirming the presence of downward momentum in the market.

Bullish Scenarios: What Would Challenge the Downtrend?

While the prevailing narrative remains bearish, Ethereum could see a shift in sentiment if it manages a decisive close above the $2,650 resistance. Such a move might encourage buyers to retest higher areas at $2,720 and beyond, potentially invalidating the bear flag. However, sustained resistance and macroeconomic headwinds make a dramatic recovery less probable in the short term.

Market Conditions and Broader Crypto Sentiment

Ethereum's struggles mirror the broader risk-off sentiment affecting global crypto markets. Uncertain macroeconomic conditions, tighter liquidity, and regulatory scrutiny have contributed to weaker demand, with traders opting for caution over aggressive accumulation. As a result, the path of least resistance for Ethereum presently appears to point downward, in alignment with technical projections.

Key Levels to Monitor

Traders and investors are closely watching several critical markers as Ethereum navigates its bearish trajectory:

• Resistance: $2,580, $2,650, $2,720
• Support: $2,500, $2,450, $2,400

Breaking through these established levels—up or down—will likely dictate Ethereum's short-term direction.

Outlook: Could $2,400 Be the Next Target?

With Ethereum entrenched within the confines of a textbook bear flag and unable to break above nearby resistance, the risk of another leg lower persists. If current supports give way, ETH could retest the $2,400 area, a level where buyers previously emerged. Conversely, a strong rebound above flag resistance would challenge this scenario and potentially set the stage for renewed upward movement.

Conclusion

In summary, Ethereum’s recent price action highlights persistent selling pressure and technical vulnerability. As the bear flag pattern dictates market structure, the short-term outlook for ETH remains cautious, with traders bracing for additional downside unless a convincing reversal unfolds. Market participants are advised to monitor key price levels and stay abreast of evolving macro and crypto-specific developments.