Will Ethereum Price Break Key Support Amid Bearish Signal?

Ethereum (ETH) price showed signs of a possible breakdown after failing to hold key technical levels.

A rising triangle pattern in the hourly chart remained active around the trading asset while showing bullish characteristics.

The price moved beneath the lower trendline as it failed to break upward through the pattern.

The price change emerged during reserve growth and market instability, which caused traders to fear possible price drops for Ethereum.

Rising Wedge Breakdown and Weak Technicals

A rising wedge pattern emerged on the hourly timeframe, and this chart pattern usually indicates future price drops.

The price area at $1,620 declined in strength and then dropped to $1,602. The recent price movement of ETH dropped below its 100-hour simple moving average while showing lower interest from buyers.

Previous attempts to break through resistance at $1,640 and $1,680 had all failed to succeed.

Market volume decreased as the price moved downward, thus confirming negative market trends.

The price maintained its position below 50 on the Relative Strength Index (RSI,) indicating weak purchasing power.

Ethereum price hovered near the 50% Fibonacci retracement level of $1,580 from its recent move between $1,472 and $1,690.

If the price failed to stay above this support, further downside toward $1,550 or lower was possible.

Ethereum also traded below its 200-day and 50-day moving averages on the broader chart.

These averages acted as resistance, especially around the $1,950 mark. The inability to push above those levels indicated that bearish control persisted, making it harder for ETH to recover in the short term.

Rising Exchange Reserves and Cautious Market Behaviour

On-chain data showed a steady increase in Ethereum being moved back to centralised exchanges.

More than 368,000 ETH had been sent to exchanges since early April. This activity pushed total exchange reserves to approximately 18.95 million ETH, reversing the decline observed in March.

The rise suggested that holders may be preparing to sell or trade their assets more actively. The rising reserves followed a price decrease, which historically leads to short-term market sell-offs.

The price declined as reserve amounts increased from March 24 to April 5. The developing investor wariness alongside price declines produced this typical trend, which suggested upcoming market drops.

The withdrawal data of institutional investors showed no obvious indication of large-scale ETH detachment throughout this period.

Numerous analysts agreed that ETH’s recent price rise failed to show corresponding positive actions on the blockchain network.

Movement in the market price and long-term holder participation demonstrated short-term bullish momentum was weak which kept sentiment among traders uncertain.

Support Levels Tested as Bearish Patterns Form

Ethereum price tested major support levels as selling continued. The $1,580 zone, which also aligned with a key Fibonacci retracement, became an area of focus.

A breakdown below this level could open the path to $1,550 and possibly $1,525. If selling pressure continued, ETH could drop to $1,450 or $1,420 in the days ahead.

The patterns on extended timeframes developed bearish characteristics. Technical setups of this type usually indicate that the present downward movement tends to continue.

ETH experienced difficulties breaking through the $1,950 resistance level while showing declining higher points which indicated adverse market conditions. The pattern becomes confirmed by a drop beneath $1,820 which would accelerate selling.

Adding to the concern, Ethereum’s market dominance is nearing all-time lows, reaching levels not seen since 2019–2020.

According to crypto analyst Rekt Capital, ETH must hold a critical support zone to regain strength in the broader market. A failure to do so could signal continued weakness.

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