Ethereum Price Analysis: A Deep Dive into the Current Market Structure
Ethereum’s price continues to exhibit weakness, with the bearish market structure extending its reach. The cryptocurrency is now approaching a critical support level at $2,900, which could potentially trigger a capitulation move. This development has significant implications for investors and traders, as it may influence the direction of the market in the near term.
The current trading range for Ethereum is defined by the support level of $2,900 and the resistance level of $3,400. The bearish structure remains intact, characterized by successive lower highs, which suggests that the selling pressure is still dominant. A loss of the $2,900 support level could accelerate the capitulation, pushing the price towards deeper support zones and potentially resetting the market structure on a long-term basis.
Key Technical Points and Market Analysis
From a technical perspective, the main support level for Ethereum is $2,900, which remains untested during the current downtrend. The key resistance level is $3,400, serving as the upper limit of the current trading range. The market structure is bearish, with consecutive lower highs and weak bullish follow-up, indicating a lack of buying conviction.
ETHUSDT (6H) chart, source: TradingView
The price action of Ethereum reflects a clear continuation of its bearish structure that began after the rejection at $3,900. Since this failure, Ethereum has steadily made lower highs, maintaining bearish pressure and suggesting that the $2,900 area will soon come into play. This level is significant as a potential liquidity zone where a recovery or accumulation phase could begin, as well as a possible support level that could trigger a capitulation-like decline.
Implications for Future Price Development
The trading range between $3,400 resistance and $2,900 support now defines the broader environment for Ethereum, with limited signs of directional conviction in the near term. Volume profiles also indicate declining buyer participation, despite minor recovery periods, there was no significant upward trend, indicating weak demand. This lack of volume confirmation maintains the bearish bias and supports the idea that Ethereum may need to push liquidity lower before a sustainable reversal can occur.
Should Ethereum fall decisively below $2,900, capitulation could accelerate, pushing the price towards deeper support zones and potentially resetting the market structure to a long-term basis. Conversely, if $2,900 is held and volume increases, a short-term recovery rally back towards $3,400 could develop. Currently, the market remains technically bearish, and $2,900 is seen as a crucial level that could determine Ethereum’s next significant directional move.
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