The current situation with Ethereum's (ETH) price raises concerns among traders due to the formation of a descending triangle, signaling selling pressure and the risk of key support breakdown.
Technical Analysis: Descending Triangle
The descending triangle pattern has become the dominant technical formation on ETH's charts. This bearish structure is characterized by repeated rejections from a downward-sloping resistance line and stable support around the $4,200-$4,300 range. Market analysts note that the resistance line is hindering upward momentum, as each new attempt to break above it results in strong selling pressure.
Support Level Breakdown Risks
The $4,200 support level has shown itself to be a reliable foundation; however, growing seller pressure creates risks for its breakdown. Recent price movements indicate that ETH is struggling to maintain positions above the 9-period exponential moving average. A lack of buyer activity may lead to a breakdown of the level, activating algorithmic selling and stop-loss orders.
Market Dynamics and Possible Scenario Developments
The current consolidation phase indicates a critical moment for ETH's intermediate direction. Trading volume has significantly decreased, suggesting that market participants await clearer directional signals. Despite the bearish technical setup, recovery scenarios remain possible. A break above $4,450 with strong volume could positively change the current outlook.
The present state of ETH requires careful observation, as the formation of a descending triangle and the potential support breakdown will largely determine the future trend.
