Over the past few months, Ethereum (ETH) has been feeling bearish pressure. It fell to its current level of nearly $1,572 from over $4,000 in December 2024, dropping to nearly $1,572. We formed a descending channel on our daily charts. This indicates that the downward momentum continues.
Volume has dropped by 33.25% over the last 24 hours, while ETH prices have risen 4.288% over the same period. Is Ethereum prepared for recovery, or will bearish forces continue to rule?
Ethereum price analysis
Price Action shows a very long downtrend that begins in December 2024. After reaching around $4,000, ETH has been declining continuously, now at $1,572. This represents a decrease of about 60% within four months. The descending channel has made it very clear how strong sales pressure has been over the past few months.
ETH prices are testing the lower boundary of the downward channel, finding temporary support near $1,422 (0 FIB level).
EMA is declining, demonstrating a bearish trend in the market structure. Therefore, Emma for the shorter period is below, highlighting a stronger bearish momentum. Currently, ETH is traded under all major moving averages.
The RSI is located at the 28.37 level, indicating that ETH is a condition for sale. Despite the oversold level, buyers are ti-disease to approach aggressively, suggesting modest feelings in the market. Nevertheless, as soon as the broader market improves, this excess status could clear potential conditions for a rally.
Ethereum has moved along a well-defined descending channel since December 2024. Price explicitly rejects attempts at the cap. Current price measures test this lower boundary at $1,550, at a critical level where prices collapse or bounce off.
The main resistance levels are achieved between the next Fibonacci level $2,029 (0.236 FIB level), $2,405 (0.382 FIB level), and $2,709 (0.5 FIB level). Immediate support is $1,422 (0 FIB level), which is exactly at the lower boundary of the downward channel. Violations below this level can cause escalation of sales pressure.
ETH price target
The bear faces immediate resistance at 0.236 FIB level ($2,029) as the first hurdle to overcome. A successful break beyond this mark could potentially target the $2,500 level, near the 0.382 FIB level.
If ETH goes below the lower limit of the channel and this falls below the $1,422 support, it is expected to drop to another $1,200. This is an additional 24% loss from the current level.
Ethereum whales move raises concerns
The ETH market has seen strong liquidation pressures occur after the price of major Ethereum fell. The whale lost 67,570 ETH, worth around $106 million. It happened due to manufacturer liquidation following a sudden Ethereum price crash.
The investor, “Seven Brothers,” recently purchased 24,817 ETH for around $42 million, boosting its total holdings to more than 1.2 million ETH.
Since February 3, the whale has purchased approximately 103,543 ETH at a total cost of $230 million. Currently, they face a loss of $64 million in these positions. This whale movement has sparked concerns in the crypto space, as large investors usually have a significant impact on market sentiment and price behavior. Crypto News is following their efforts today.
