Ethereum has been on a downward trajectory after breaking below a double top neckline support level around $2,500, which had previously acted as both resistance and support throughout 2024. This breakdown signals that sellers have gained significant control over the market, potentially setting the stage for further declines.
The price is currently trading at approximately $1,838.89, having fallen substantially from its recent peak near $3,000. This represents a correction of nearly 40% from the highs, indicating strong bearish momentum in the near term.
ETHUSD Key Levels to Watch
Further downside momentum spurring a break below the recent lows around $1,830.00 could clear the way for a selloff to the longer-term support zone close to the $1,000 major psychological mark. On the other hand, a bounce off current levels could create a retest of the former neckline support around $2,500 which could attract more selling pressure.
A rally past this area of interest, however, could give ethereum bulls enough energy to take price back up to the next upside targets. The near-term resistance at the $3,000 major psychological mark appears to be a decent resistance zone, followed by the highs closer to $4,000.
Current support levels:
- $1,800: Psychological level near current trading price
- $1,700: Previous support from early 2023
- $1,500: Major psychological level
Key resistance levels:
- $2,000: Psychological round number
- $2,500: Previously broken support, now resistance
- $3,000: Previous peak and strong psychological barrier
Ethereum Technical Analysis
Looking at the moving averages, both the 100 SMA and 200 SMA have started to slope downward, with the 100 SMA crossing below the 200 SMA in what technical analysts call a “death cross.” This bearish crossover typically indicates that the path of least resistance is to the downside and that sellers have the upper hand in the market.
Price action shows that ETH/USD has been making lower highs and lower lows since early 2025, confirming the establishment of a bearish trend. The breakdown below the horizontal support level around $2,500 further validates this bearish outlook.
The MACD (12, 26, close) indicator shows bearish momentum, with the MACD line below the signal line and both trending lower. Though there appears to be some attempt at convergence recently, the overall momentum remains negative as the histogram continues to show bearish readings below the zero line.
Stochastic (14, 3, 3) has been oscillating between overbought and oversold conditions, but recently it has started to move upward from the oversold zone. This could potentially signal a short-term relief rally or consolidation before the next leg down. However, as long as the price remains below the key resistance levels, the dominant trend remains bearish.
From a longer-term perspective, Ethereum had been in an uptrend from mid-2022 to early 2024, but the current price action suggests a potential shift in the larger trend. The breakdown below the horizontal support level that had held throughout much of 2024 indicates that the market structure might be changing.
For the bearish momentum to be invalidated, ETH/USD would need to reclaim and hold above the $2,500 level, preferably with strong volume confirming the move. Until then, traders should be cautious of potential further declines, with the next major support zones lying around $1,700 and $1,500.
While technical factors point to continued bearish pressure, Ethereum’s upcoming network upgrades and the broader adoption of layer-2 solutions could provide fundamental support. However, market sentiment appears to be currently dominated by technical factors and broader market dynamics, including traditional market correlation and regulatory concerns.
