Ethereum Bearish Breakdown Raises Risk of Drop Toward $1350

  • ETH broke below a major triangle support structure
  • Liquidation activity continues adding downside pressure to price
  • Analysts identify $1,350 as a key support target zone

Ethereum is facing renewed pressure as technical indicators point to a deteriorating market structure. Ethereum traded at $2,142.52 at press time, up 1.53% over the last 24 hours. Despite the daily gain, analysts are warning that weakening momentum and recent chart developments could create downside risk if buyers fail to reclaim critical price levels.

Ethereum Bearish Breakdown Signals Rising Selling Pressure

Recent analysis from CryptoQuant suggests Ethereum has entered a more fragile technical phase. The asset recently broke below an important triangle pattern that previously supported a prolonged consolidation period. Such breakdowns often indicate a shift in control from buyers toward sellers.

Moving averages are also reinforcing this signal. The short-term moving average has slipped below the long-term average, creating a bearish crossover. This pattern frequently appears during periods of strengthening downside momentum.

CryptoQuant analyst PelinayPA noted that the downward turn in key moving averages reflects broader market weakness rather than a temporary pullback. Traders often view multiple bearish indicators aligning at the same time as a stronger warning signal.

Current price behavior also shows that recovery attempts continue to attract selling pressure. Rather than establishing stronger support levels, Ethereum has struggled to sustain bullish follow-through.

Ethereum Liquidation Data Adds More Pressure to ETH Price

Derivatives activity is creating another concern for Ethereum traders. Binance, which handles a large share of global ETH futures activity, recently saw an increase in long liquidation events. Forced closures of leveraged positions can intensify market declines.

According to CryptoQuant data, these liquidation waves often represent larger market participants unwinding positions. The resulting sell pressure can accelerate short-term price weakness beyond normal spot trading activity.

The market response following these liquidation events remains important. Historically, large liquidation spikes sometimes create rebound opportunities. However, Ethereum has failed to produce strong recovery moves after recent selloffs.

ETH price continues to trade below resistance near $2,400 while testing key support zones. Immediate support remains around $2,067, while a loss of that level could expose the $2,000 area. 

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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