Ethereum Faces Prolonged Struggles
Ethereum Faces Prolonged Struggles, Risks Further Declines
Ethereum continues to face resistance, failing to gain momentum for over a year. Despite numerous attempts, the second-largest cryptocurrency by market cap remains unable to break through key technical barriers.
Recent price action indicates increasing weakness, with Ethereum showing continued struggles over the past two weeks. Analyst Tony "The Bull" Severino highlights a critical failure to surpass long-term resistance, warning of potential severe downturns ahead.
Ethereum’s Persistent Resistance Battle
In a detailed analysis shared on social media platform X, Severino pointed out Ethereum’s repeated inability to breach significant resistance levels. Specifically, Ethereum has failed to reach the quarterly (three-month) Parabolic SAR, a trend indicator that has remained unbroken for over a year. This suggests that the cryptocurrency is still locked in a larger downtrend.
“This is sending a strong message—resistance won’t be broken,” Severino stated.
Further reinforcing the bearish outlook, Severino also noted that Ethereum has repeatedly been rejected by the quarterly (3M) SuperTrend dynamic resistance, underscoring the difficulty buyers face in regaining control of the market.
Critical Support Level in Jeopardy
Ethereum's inability to hold key price levels has been evident over the past six months, with its recent performance confirming this downward trend. The cryptocurrency failed to maintain a position above $2,800, leading to a gradual decline and the loss of multiple support zones.
Currently trading below $2,200, Ethereum is approaching the critical $2,100 threshold. This level is significant not only for psychological reasons but also due to technical indicators suggesting that a monthly close below $2,100 could spell further trouble.
One key warning sign comes from the quarterly Bollinger Bands, which have tracked Ethereum’s price movements since early 2022. The indicator currently places the upper band at $4,190 and the lower band at $2,098. A close below $2,100 would indicate a break beneath the lower Bollinger Band, potentially removing a long-standing support level and opening the door to further losses.
Ethereum’s Next Moves Crucial
At the time of writing, Ethereum is trading at $2,178, reflecting a modest 2.2% gain in the past 24 hours after dipping to $2,120 earlier in the day. Market sentiment remains at its lowest point this year, making the upcoming weeks critical for Ethereum’s trajectory.
Traders and investors will be closely watching to see whether Ethereum can reclaim lost ground or if it will confirm bearish fears with a monthly close below the key $2,100 level.
