Ethereum, back to a bear market?... "Doesn't even give retail investors time to escape"

▲ Ethereum (ETH)/ChatGPT generated image

Ethereum (ETH) has entered a new downturn, drawing a downward curve at a much faster pace than expected, leaving behind its painstakingly built recovery.

U.Today, a cryptocurrency specialized media outlet, reported on April 28 (local time) that Ethereum's controlled recovery phase has halted, and the downtrend has resumed more quickly than most expected. After securing the $2,000 mark, Ethereum attempted a gradual ascent but failed to gather enough energy to sustain it. Ultimately, its price structure suffered a devastating collapse near a major resistance level.

The most critical turning point is the resistance zone between $2,300 and $2,400. Ethereum attempted to hold above the short-term moving average, but no subsequent buying interest followed. Currently, instead of forming a breakout scenario, Ethereum is showing signs of compression below a declining resistance line. This movement forms a very fragile bearish continuation pattern.

Technical indicators are also adding to the downward pressure. Ethereum is currently trading below key short-term and medium-term moving averages, which have begun to turn downwards. Indicators that acted as support during the initial recovery phase have now transformed into resistance levels pushing the price down. As the long-term moving average continues to slope downwards, the overall trend remains highly negative.

Volume imbalance indicates that sellers are dominating the market. Data from Coinglass, an on-chain data analytics firm, shows that participation decreased during recent attempts to rally. Conversely, activity noticeably surged whenever selling pressure emerged. These structural flaws undermine the reliability of recently formed lows, increasing the potential for further declines.

If Ethereum fails to quickly reclaim the $2,300 level, downward pressure is expected to intensify further. Unless buyers step in with decisive defense, the price is at high risk of testing lower support zones. Currently, Ethereum has lost momentum for a trend reversal and is defenseless against further declines. Market uncertainty is likely to persist for some time.

*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.*