"More dangerous than Bitcoin"...Ethereum, fear of $2,000 collapse after long sideways movement

▲ Bitcoin (BTC), Ethereum (ETH)

An analysis has emerged suggesting that the Ethereum (ETH) chart is structurally showing a weaker trend than Bitcoin (BTC). Ethereum is still trading below key resistance levels on higher time frames, and recent attempts at a rebound already appear to be losing momentum.

U.Today reported on May 23 (local time) that Ethereum has been trading below its 200-day moving average for several months, analyzing that the macro trend still favors sellers. The 200-day moving average currently maintains a downward slope in the mid-$2,500s. This is interpreted to mean that the long-term trend is closer to bearish pressure than a bullish reversal.

The most important pattern on the chart is a descending wedge pattern or a descending resistance structure formed throughout April and May. Ethereum tested the upper boundary between $2,350 and $2,400 multiple times but failed to achieve a clear breakout. Subsequently, the price reversed direction again, falling below the short-term moving averages.

The arrangement of moving averages also acts as a burden. Both the 50-day moving average and the 100-day moving average remain below the 200-day moving average. Such a bearish arrangement is usually interpreted as a structure indicating the likelihood of continued additional pressure rather than a stable recovery trend.

Ethereum recovered to around $2,000 after the February decline, but buying pressure did not generate enough momentum to completely reverse the overall structure. Trading volume also decreased during the sideways consolidation phase. The fact that participation in the preceding selling phase was much stronger than in the rebound phase supports the analysis that this is closer to a corrective movement within a long-term downtrend than the start of a new bullish phase.

The Relative Strength Index (RSI) also confirmed weakening momentum, falling into the early 40s. Currently, Ethereum is approaching a key support zone between $2,100 and $2,150. If this zone breaks, the chart is likely to retest the psychological price level of $2,000, and downward pressure could extend to lower support zones formed after the February sell-off.

For the uptrend to reverse the structure, it needs to reclaim the descending resistance trendline and move back above the cluster of moving averages around $2,300 to $2,400. Based on the current chart, Ethereum is evaluated as an asset with weakening rebound momentum below major resistance levels, rather than an asset that has entered a recovery phase.

*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.*