Ethereum is approaching a crucial technical crossroads as bearish momentum continues to weigh on price action. With a major support zone under intense pressure, traders are keeping a close eye on whether bulls can defend this level or if a breakdown will open the door for a deeper decline.
The collapse of the bear flag keeps Ethereum under pressure
Ethereum continues to fall, in line with the broader bearish sentiment currently dominating the market. According to Analysis from More Crypto Online, the asset’s recent breakdown against a previously identified bear flag and the rejection of the yellow trendline strengthen the hypothesis that the significant B-wave rally peaked in April. These technical failures serve as strong indicators that the prevailing trend is still clearly downward.
The leading scenario currently suggests that Ethereum is developing within a larger C-wave decline, with key support levels at USD 1,550 and USD 1,400. Although the price has already started to react from the first support area, traders should remain cautious as bear market cycles often bring corrective rallies that can emerge unexpectedly from these support zones.
In terms of risk management, any potential recovery attempt is expected to remain strictly corrective as long as the price continues to trade below the yellow trendline resistance. However, for a stronger recovery, the bulls would need to regain substantial resistance levels and fundamentally negate the current bearish framework. At this stage, such a reversal lacks the necessary confirmation and market strength.
Ultimately, Ethereum remains locked in a definitive bearish trend after exiting the bear flag formation. With the $1,550 and $1,400 support levels clearly in focus, the structural setup continues to favor lower price action over an immediate reversal.
ETH reaches a critical decision area
Crypto analyst MarketMaestro noted in an X post that Ethereum has successfully maintained both its long-term support trendline and a key Fibonacci support level on the monthly chart. According to the analyst, the current price zone has become a crucial battleground between a routine correction and a much deeper structural decline.
A monthly close below the current support area would significantly weaken Ethereum’s technical prospects and increase the risk of a broader collapse. On the other hand, if support holds, the recent pullback could still be seen as a healthy correction within the asset’s longer-term bullish framework.
Moreover, if Ethereum manages to hold support, form a fuse on the monthly candle and recover from current levels, it could indicate that buyers are aggressively accumulating during the dip and treating it as a valuable entry zone.
Despite the possibility of a recovery, MarketMaestro warned that the stakes remain high. A decisive collapse below support could force Ethereum into a prolonged bottoming process, potentially extending the period of weakness before a sustainable uptrend.