"Just when I thought it would rise this time"...Is Ethereum's recovery to the mid-$2,300s a trap?

▲ Ethereum (ETH)

Ethereum (ETH) is losing momentum again after a brief recovery attempt. Recent charts show the formation of a bearish shooting star pattern, raising warnings that it could put new pressure on short-term price movements.

According to cryptocurrency media outlet U.Today, Ethereum attempted to stabilize its price in recent weeks after undergoing a significant correction earlier this year. The price, which recovered its short-term moving average, briefly returned to the mid-$2,300 range. While this trend raised hopes that Ethereum could challenge higher resistance levels again, the current momentum appears to be slowing down.

On the chart, a bearish shooting star pattern is appearing just below a major resistance line. This pattern typically forms after an upward movement. Initially, buying pressure pushes the price up, but then selling pressure takes over, pushing the price down near the top of the candle. This is interpreted as a warning sign that bullish momentum may weaken before a successful breakout.

Ethereum's overall structure also remains unstable. The 100 Exponential Moving Average (EMA) acts as resistance from above, and the price remains below the 200 EMA. Major rebound attempts in recent months have all failed to attract follow-up buying, and Ethereum continues to form lower highs in the long-term timeframe.

Trading volume also remains relatively low compared to previous expansion phases. Currently, Ethereum appears to be more of a market attempting to stabilize its price rather than one poised for a strong upward cycle.

The rotation of funds within the cryptocurrency market is also a burden for Ethereum. Traders are still chasing faster-moving sectors such as meme coins, privacy assets, and Telegram-related ecosystems. Ethereum's movement has appeared slow and lacking explosive power compared to these sectors, and short-term speculative demand has weakened accordingly.

However, if Ethereum reclaims its resistance level and invalidates the bearish shooting star pattern, investor sentiment could improve rapidly. The market is currently reacting more cautiously to the possibility of a failed resistance breakout than to an Ethereum rebound.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*