After the weekend, the Ethereum price had risen tried to make another recovery besides Bitcoinbut ultimately the recovery attempt failed again. In TradingView, crypto analyst DomicChaina explains what’s going on behind this phenomenon and why the Ethereum price is unlikely to see a meaningful recovery. As it stands now, it appears the leading altcoin is more likely to suffer a decline towards new monthly lows than an actual recovery.
Technical factors are driving the price of Ethereum further down
The crypto analyst highlights some technical developments that indicate that the Ethereum price is in a bearish phase. One of the most important ones has to do with both the EMA34 and the EMA89. According to the analyst, price performance against these two EMAs suggests that the downtrend will continue.
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First, the EMA39 had actually passed under the EMA84, and both at the same time moving averages have gone down. This means that despite recovery efforts, Ethereum price is still in a medium-term downward trend. Chaina adds that this means the current trend is sideways or a basic process, rather than pointing downward.
For any meaningful recovery to occur, Ethereum price would have to break out of this range. However, as long as it continues to maintain this structure, the altcoin is expected to continue falling towards the next major support at $2,500.
The resistance remains strong
In addition to the general trend pointing down, there is also the matter of rising resistance at $3,090, which coincides with the EMA34. So far, this backlash has killed multiple recovery attempts, with the latest also halted earlier this week. With the EMA89 also pointing down, it means the price is likely to drop and recover from here.
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The analysis also highlights the declining volume as evidence that capital inflows into the altcoin remain weak. This is not expected to change with the holidays as investors will move away from the market and focus on the festivities. “This week falls in a holiday period, which reduces market liquiditycausing price movements to be slower and there being no breakout momentum,” it said.
Recovery candles that also last very short show that recovery efforts to date, and those that could follow, are being suppressed. For now, Ethereum price remains sub-$3,000, recording a 37% decline from its all-time high in 2025.
Featured image of Dall.E, chart from TradingView.com