- Ethereum broke below a key pattern at $1,820, signaling a bearish continuation toward the $1,600 support level.
- Declining on-chain activity, including reduced fees and active addresses, confirms weakening demand for the asset.
- ETH dominance is falling, suggesting further downside as the asset underperforms relative to other major cryptocurrencies.
Ethereum is nearing a critical support level as continued selling pressure pushes the price lower. According to market analyst Bit Bull, ETH could soon test the $1,600 mark following a breakdown from a symmetrical triangle pattern on the charts.
Bit Bull identified that Ethereum exited a symmetrical triangle pattern after breaking past the $1,820 level, despite analysts viewing this structure as a continuation indicator. The downward movement that happened under his observation suggested stronger bearish pressure because of diminished trading levels, according to his assessment. ETH has maintained prices below $2,000 for many weeks without showing any promising signals of price recovery.
Retest Confirms Bearish Outlook
The breakdown was followed by a retest of the lower trendline, which failed to regain ground. This technical setup has triggered more short positions, increasing selling pressure. Bit Bull emphasized that the pattern now indicates a possible deeper move down, confirming a bearish market structure.
Another bearish signal comes from Ethereum’s market dominance chart. Bit Bull highlighted the formation of a descending triangle pattern, which typically forecasts more downward movement. He noted that even if the dominance chart sees a minor recovery, the overall trend suggests continued weakness in ETH compared to other cryptocurrencies.
On-Chain Metrics Add to Bearish Sentiment
The data within the blockchain maintains consistency with its technical analysis indicators. The number of active Ethereum wallet addresses has decreased since the beginning of the current few months. The Ethereum network showed two significant positive metrics through its processing of transactions through a reduction of both fees charged and wear and tear on the platform.
Ethereum’s supply continues to grow since the Merge upgrade, which weakens potential bullish predictions. The rising supply creates additional pressure on prices that reduces them further because demand has not strengthened.
During the time period where the price stayed below $1,900 Ethereum maintained a support level at $1,800. The current market price of the asset stands at $1,803 despite minimal weekly and daily price drops of below 1 percent. Market transactions have reached $7 billion in volume while the top shareholder group continues to control most trading activity.
