Ethereum is approaching a key technical crossroads as bearish momentum continues to weigh on price trends. The key support zone is currently under intense pressure and traders are watching to see if the bulls can defend this level or if a breakdown opens the door to further decline.
Ethereum remains under pressure due to bear flag breakdown
Ethereum continues to decline, consistent with the broader bearish sentiment currently dominating the market. According to More Crypto Online analysis, the recent breakdown of the asset from the previously identified bear flag and rejection of the yellow trend line strengthens the hypothesis that a significant B-wave rally peaked in April. These technical failures serve as strong indicators that the general trend is still downward.
Currently, the leading scenario suggests that Ethereum is developing within a larger wave C decline, with major support levels set at $1,550 and $1,400. Although prices have already started to react from initial support zones, traders should remain cautious as bear market cycles often include correctional pullbacks that emerge unexpectedly from these support zones.
From a risk management perspective, any potential recovery attempt is expected to remain strictly corrective as long as price continues to trade below the yellow trendline resistance. However, a stronger recovery would require the bulls to regain significant resistance levels and fundamentally invalidate the current bearish framework. At this stage, such a reversal lacks the necessary confirmation and market strength.
As it turns out, Ethereum remains trapped in a definitive bearish trend even after breaking out of the bearish flag formation. The $1,550 and $1,400 support levels are currently in focus, with the structural setup continuing to favor downside action over an immediate reversal.
ETH reaches critical decision area
Crypto analyst Market Maestro noted on X-Post that Ethereum has managed to hold both the long-term support trend line and the key Fibonacci support level on the monthly chart. According to the analyst, the current price range is a key battleground between a day-to-day correction and a more serious structural decline.
A monthly close below the current support area would significantly weaken Ethereum’s technical outlook and increase the risk of a broader collapse. On the other hand, if support continues to hold, the recent decline could still be seen as a healthy correction within the asset’s long-term bullish framework.
Furthermore, if Ethereum manages to hold support, form a wick on the monthly candlestick, and rebound from current levels, it would suggest that buyers are actively accumulating during the selloff and treating it as a high-value entry zone.
The market maestro warned that despite the potential for recovery, risks remain high. A decisive drop below support could force Ethereum into a prolonged bottoming process, potentially extending the period of weakness before a sustainable uptrend.
