Ethereum (ETH) Pullback Deeper Than Expected: Bounce Setup or More Pain Ahead?
Ethereum (ETH) has faced significant pressure, falling under $3,200 during a market-wide sell-off, with a drop of over 6% in 24 hours and more than 17% in a week. The ETH/BTC pair has reached an accumulation zone, and technical indicators show mixed signals. Analyst Kamran Asghar highlighted that ETH is testing a multi-year ascending support trendline, which remains intact. Projections suggest potential recovery with targets above $4,000 and beyond, while downside risks could lead to a drop towards $2,400 or lower if critical levels are not reclaimed.
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Ethereum Suffers Sharp Decline
Ethereum (ETH) has come under pressure this week, dropping to under $3,200 during yesterday’s market-wide sell-off. The asset is down over 6% in the last 24 hours and more than 17% in the past seven days, according to data from CoinGecko. After a strong performance earlier this year, the latest move has brought ETH back to key technical levels.
ETH/BTC Enters Accumulation Zone
The ETH/BTC chart indicates the pair has returned to a critical area historically associated with accumulation. Analyst Michaël van de Poppe noted, "A little deeper than expected on ETH, but this is still the level that I think is wise to look for potential accumulations." ETH/BTC is currently trading near 0.0326 BTC, aligning with previous consolidation levels. This area once acted as resistance in early 2025 and could now act as support.
Technical Indicators Reveal Mixed Signals
While Weekly RSI remains above oversold territory, daily Stochastic RSI has dropped into the oversold range, signaling that the recent sell-off may be slowing. Additionally, the MACD histogram is showing smaller red bars, hinting at weakening downside momentum. However, key technical levels remain under close observation.
Long-Term Support Holds Steady
Analyst Kamran Asghar highlighted that ETH is testing a multi-year ascending support trendline that has held since 2022. Over the past two years, the price has bounced multiple times from this trendline. “$ETH is making a critical retest of the multi-year ascending support trendline,” Asghar shared, while posting a chart illustrating the trendline's significance.
Potential Upside Scenarios
Crypto analyst Ali Martinez outlined a scenario where Ethereum could push higher. According to him:
- Holding above $3,800 could be the first step.
- A reclaim of $4,900 could follow.
- The ultimate target could potentially reach $8,000, with potential resistance zones at $5,600, $6,400, and $7,200.
This optimistic outlook depends on the asset regaining and maintaining critical price levels.
Downside Risks Remain
Despite optimism, risks of further downside cannot be ignored. Martinez warned that if ETH fails to reclaim $4,000, the price could plunge to $2,400 or even $1,700. Similarly, trader Ted stated that Ethereum must reclaim the $3,500–$3,600 zone. He emphasized that failure at this critical range could lead to another drop, possibly toward $2,800. At the moment, Ethereum sits at a key zone, with both buyers and sellers awaiting confirmation of the trend.