Ethereum has been trading within a clear descending triangle since early March, with the price establishing a series of lower highs and lower lows that confirm the prevailing bearish trend. The cryptocurrency is currently hovering around the $1,792.95 level, which appears to be a critical support zone as shown on the chart.
The price action shows Ethereum recently attempted to rally toward the upper boundary of its descending triangle but failed to break above significant resistance near the $1,950-2,000 zone. This rejection at the descending trendline resistance indicates that sellers remain in control of the market direction for now.
Key Ethereum Levels to Watch
The immediate support level sits at the current price zone of approximately $1,790-1,800. If this support fails to hold, Ethereum could accelerate its decline toward the lower boundary of the descending triangle, potentially testing the $1,700 level.
On the upside, Ethereum faces significant resistance at the descending trendline, which currently aligns with the $1,950 level. Above this, the psychological $2,000 level and the 50-period moving average would present additional barriers. A daily close above these resistance levels would be needed to invalidate the current bearish outlook.
ETHUSD Technical Analysis
The 100-period moving average (blue line) has crossed below the 200-period moving average (red line), creating a bearish crossover that typically signals more downside potential. Both moving averages are now acting as dynamic resistance levels, with the price finding it difficult to sustain movements above them.
Looking at the oscillators, the Stochastic indicator (14,3,3) has recently turned lower from the overbought region, suggesting that bullish momentum is fading and sellers are regaining control. This downturn in the Stochastic aligns with the price rejection at the upper trendline, reinforcing the bearish outlook.
The MACD (12,26,close) shows weak momentum with the histogram bars turning slightly negative, and the MACD line crossing below the signal line, which typically indicates a bearish momentum shift. The convergence of these technical signals suggests Ethereum could continue its downward trajectory in the near term.
Ethereum Price Outlook
Ethereum’s price action appears to be mirroring Bitcoin’s recent weakness, as described in the BTC/USD analysis. Both cryptocurrencies are showing signs of correction after their impressive rallies earlier in the year.
Market participants seem to be reassessing the immediate impact of Trump administration policies on cryptocurrencies, with some profit-taking occurring in the absence of concrete regulatory developments.
Ethereum’s underperformance relative to Bitcoin in this correction phase could be attributed to network-specific factors or shifting market sentiment around Layer-1 blockchains, as investors await further clarity on Ethereum’s scaling solutions and their adoption rates.
The technical outlook for ETH/USD remains bearish in the short term, with multiple indicators suggesting continued downside pressure. Traders should watch for a potential break below $1,790 as confirmation of further weakness, while any rally toward the descending trendline and moving average resistance zone would likely present selling opportunities for bearish continuation plays.
However, a decisive break and daily close above the descending triangle and the 100/200 period moving averages would suggest a potential shift in the trend direction, potentially opening the path toward retesting previous highs.
