Ethereum is facing renewed selling pressure as market uncertainty increases and confidence continues to erode across the broader crypto market. After weeks of volatile price action and failed attempts at recovery, ETH is struggling to attract sustained demand, with a growing number of analysts warning that the market may be entering the early stages of a bear cycle.
Volatility remains high, conditions are weak, and traders appear hesitant to deploy capital as downside risks become more pronounced.
Related books
Recent on-chain and technical analysis by CryptoQuant reveals why there is growing concern. Ethereum’s price structure has tightened into a descending triangle formation, a pattern that often appears during periods of distribution rather than accumulation.
Price is still constrained below a well-defined downtrend line, while the key moving averages continue to act as overhead resistance, limiting upside momentum. This compression reflects a market where sellers remain in control even as prices attempt to stabilize.
Historically, this kind of technical setup was disadvantages Solved. In the case of Ethereum, the $2,800 level is a key support zone. A sustained break below this is likely to confirm broader bearish continuation and could accelerate losses as stop orders are triggered.
Tight on-chain supply poses challenges to Ethereum’s bearish technical outlook
Ethereum’s price structure continues to reflect stress, but on-chain data tells a more nuanced story. analysis Data shared by CryptoOnchain highlights a sharp decline in the amount of ETH available for immediate sale on major exchanges, especially Binance. Binance’s Ethereum exchange supply ratio has fallen to 0.032, the lowest since September 2024, indicating a significant reduction in liquidity supply despite continued price weakness.
This decline suggests that market participants are moving ETH from exchanges to self-vault, an action typically associated with long-term positioning rather than an imminent sell-off. From a practical perspective, fewer coins on exchanges reduces the immediate seller-side pressure that often exacerbates downtrends. The timing is notable as this supply contraction is unfolding while Ethereum is still trapped in a bearish technical formation.
The contrast between charts and on-chain data is becoming increasingly important. From a purely technical point of view, descending triangles and sustained resistance demand attention. However, a contraction in the supply of foreign exchange poses a risk of supply-driven movements if demand remains stable. If buyers are successful in defending the $2,800 support zone, even a small inflow of funds could have a significant impact on the price as it reduces available liquidity.
For now, the market is at a tipping point. A decisive breakout above the downtrend line would reinforce the view that accumulation may take precedence over distribution and the balance may shift away from the prevailing bearish narrative.
Related books
Ethereum consolidates while maintaining bullish structure
Ethereum is trading near the $2,930 level on the daily chart, holding steady after an extended decline from its late summer highs. The broader structure remains technically weak, with the price still forming a series of lower highs and lower lows as it failed to sustain above the $4,500-$4,800 zone earlier in the cycle. This rejection marked a clear trend change, moving ETH from an expansionary to a correctional and potentially distributional phase.
From a trend perspective, Ethereum remains below the major daily moving averages. The faster moving averages have reversed sharply and continue to act as resistance for the time being, while the 111-day and 200-day simple moving averages are sitting higher, converging in the $3,400 to $3,600 range. This layered resistance suggests that unless momentum improves meaningfully, any upside bids will likely face strong selling pressure.
Related books
Price movements in recent weeks have reflected more indecision than recovery. ETH remains in a narrow range between approximately $2,850 and $3,050. This indicates short-term stabilization, but no reversal has been confirmed. Volume supports this view, as the initial breakdown was dominated by a surge in selling, but the subsequent rebound lacked strong participation from buyers.
Technically, the $2,800-$2,900 zone is still important. Holding on to the area would preserve the possibility of base construction, but a definitive collapse would open the door to a deeper withdrawal. For the structure to improve, Ethereum needs to regain the $3,200-$3,300 region and regain acceptance above the declining daily average.
Featured image from ChatGPT, chart from TradingView.com
