The cryptocurrency market is facing a day of high volatility, especially after the breach of critical technical levels by Ether. During recent sessions, the price of Ethereum has fallen below the $2,800 mark, signaling a sharp Ethereum downtrend that could extend toward lows not seen in several months.
According to veteran technical analyst Peter Brandt and on-chain data from Glassnode, the loss of this structural support invalidates previous bullish setups. The convergence of descending triangle patterns suggests that the price could retreat to $2,100, representing a potential 22% correction from current trading levels in the short term.
Ethereum Breaks Demand Levels Following a Massive Liquidation of Long Positions
Price action has shown persistent weakness, accumulating a decline of over 10% in just three days of continuous trading. By losing the psychological barrier of $2,800, which coincided with the base of a symmetrical triangle, the cryptocurrency has been exposed to selling pressure that seems to find no immediate brake.
Industry experts agree that the current $2,700 area functions as a decisive turning point for bulls in the market. If the market fails to defend this zone, the next relevant support level is located near $2,500, where the 200-week simple moving average could act as a technical buffer.
However, the technical outlook is complicated by the negative divergence observed in the Relative Strength Index, which has collapsed significantly. This retreat in momentum suggests that sellers maintain absolute control over the market, facilitating the continuation of corrective movements toward lower technical price targets.
Can On-chain Indicators Confirm the Start of a Sustained Bear Market?
The current situation is not only reflected in price charts but also in internal network metrics that measure holder profitability. Recently, the NUPL indicator has transitioned into the fear zone, a move that has historically preceded prolonged devaluation cycles within the broader digital asset ecosystem.
Furthermore, analysts have detected a bearish crossover between the 111-day and 200-day moving averages, an event not seen for several years. This technical phenomenon, added to global macroeconomic uncertainty, reinforces the thesis that the Ethereum downtrend responds to structural capital distribution factors.
On the other hand, retail investor capitulation could intensify if the asset fails to quickly reclaim $2,800 in the short term. In this way, the lack of a solid recovery would turn the old support into a formidable resistance, hindering any attempt at a significant rebound toward the $3,000 zone.
To conclude, Ether’s immediate future will depend on its ability to stabilize within historical support ranges before a larger fall. While investors closely monitor Bitcoin’s behavior, it remains clear that a risk-aversion environment dominates the overall sentiment, suggesting extreme caution regarding the possibility of further cascading liquidations.
