Ethereum has faced significant selling pressure in recent trading sessions as broader market trends turn more bearish. After attempting to break above key resistance levels, ETH has encountered hurdles that suggest the prevailing trend is shifting toward a more negative outlook. As the price begins testing the $3,051 support, a potential breakdown could signal a deeper pullback, which might push ETH toward lower support levels.

Key factors contributing to this bearish sentiment include weakening buying interest, market-wide retracements, and technical indicators signaling further downside risks. Ethereum’s failure to maintain upward momentum, especially after hitting resistance, suggests that the bulls may be losing control, leaving the bears in the driver’s seat.

The $3,051 level is critical for the altcoin’s short-term outlook. If the price fails to hold above this support, it could accelerate the downward move, possibly targeting the next support zone. However, if ETH stabilizes here and shows signs of a bullish reversal, it may regain upward momentum and resume its recovery.

Technical Signals Point To Bearish Shift: What’s Next For ETH?

Ethereum’s technical indicators are painting a concerning picture of the cryptocurrency’s short-term outlook. The price action has struggled to break through key resistance levels, and recent downward movements suggest that the bulls may have lost control.

As of the time of writing, ETH’s price is still trading below the 4-hour Simple Moving Average (SMA), which suggests bearish pressure is still prevailing in the market. The 4-hour SMA serves as a short-term trend indicator, and when the price is below it, it typically indicates that selling pressure is dominating the market.

This failure to break above the SMA highlights the ongoing struggle for Ethereum to reclaim bullish momentum. Until ETH rises above and closes above the SMA, the downside risks remain intact, and the bears are likely to maintain control.

Furthermore, ETH’s Relative Strength Index (RSI) has been persistently staying within the bearish zone, reinforcing the negative outlook for Ethereum. Typically, an RSI reading below 50% indicates a lack of upward strength, implying that selling pressure outweighs buying interest in the market. In Ethereum’s case, the sustained positioning in the bearish zone signals that bulls are struggling to gain traction and push the price higher.

Can Ethereum Defend Against The Bears?

Currently, Ethereum’s price is approaching a crucial support level at $3,051, which has become a key point to watch as bearish pressure mounts. This support zone represents a potential floor for Ethereum, and its ability to hold above this level will be pivotal in determining the asset’s next move.

A successful defense of $3,051 could stabilize the price and spark a rebound toward the $3,360 resistance as it may encourage buyers to step in and halt more declines. However, if Ethereum fails to maintain this support and breaks below it, the bearish momentum might intensify, pushing the price toward lower levels.

Featured image Unsplash, chart from Tradingview.com

After Monday’s drop, Ethereum (ETH) fell below key support levels and hit its lowest price since November. Nonetheless, several market watchers remain bullish, predicting a massive rally for the cryptocurrency this quarter.

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Ethereum Drops To Two Month Lows

Ethereum started the week with a significant correction, falling from the weekend range to its lowest price in two months. Over the weekend, Ethereum hovered between $3,200 and $3,340 after recovering from last week’s lows.

Amid this performance, crypto analyst Ali Martinez pointed out that ETH’s most critical resistance was between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the cryptocurrency’s key support was between the $3,066 and $3,160 price range, where 4.12 million addresses had bought 4.9 million ETH.

Ethereum tested this support zone during the December corrections, bouncing from the zone after the pullbacks. However, the king of Altcoins fell below this key support for the first time since November 9, hitting $2,920 on Monday.

After the 12% retrace from the weekend highs, ETH tested its post-election breakout level, confirming the $2,900 price range as support. Ethereum quickly bounced from this level, surging 9% to the $3,100-$3,200 range.

Crypto investor Miky Bull considers ETH’s recent performance the “perfect setup for a massive reversal.” The trader noted this could be the reversal that leads to a breakout from Ethereum’s inverse head and shoulders pattern.

The second-largest cryptocurrency by market capitalization has been forming a multi-month inverse head and shoulder pattern, as noted by several analysts, with its left shoulder formed around the $2,800 price range.

Rekt Capital had suggested that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Meanwhile, Miky Bull stated that the bullish setup targeted the $7,000 mark.

ETH Resembles 2021 Trajectory

Analyst Crypto Bullet pointed out that ETH’s chart resembled its 2021 behavior. The chart shows Ethereum saw a Double Top pattern during its rally over three years ago. Then, the cryptocurrency fell below the key support zone of $3,100, confirming the pattern.

However, it reclaimed this level after consolidating for two weeks, which led to the breakout to ETH’s all-time high (ATH). According to the analyst, Ethereum is repeating this pattern after yesterday’s drop, suggesting that the cryptocurrency’s “worst-case scenario” would be hitting ATH levels again.

Daan Crypto Traders highlighted ETH’s historical performance during the start of the year, stating that “the percentages ETH does within its first few weeks of the year are pretty crazy.”

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CoinGlass data shows that Ethereum registered mostly negative weekly returns in the first weeks of 2024 but started a 6-week positive streak as February approached. This could suggest that ETH’s negative performance could be reversed in the coming weeks. Nonetheless, Daan advised investors to look at the quarterly returns for a better overview of seasonality.

As of this writing, ETH is trading at $3,230, a 3% increase in the daily timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com

2025 has not started on a strong note for Ethereum (ETH), as the second-largest digital asset by market cap continues to trade below its yearly open. Recent on-chain movements also suggest that crypto whales might be losing confidence in ETH’s potential to deliver outsized returns.

Are Whales Losing Faith In Ethereum?

While cryptocurrencies like Bitcoin (BTC), SUI, and Solana (SOL) experienced stellar performances in 2024 – delivering exceptional returns to investors and hitting new all-time highs (ATH) – Ethereum’s journey was comparatively underwhelming.

Unlike its peers, which set fresh ATHs in 2024, Ethereum’s ATH of $4,878 remains untouched since November 2021. This highlights ETH’s relatively weaker price performance last year.

Moreover, Ethereum repeatedly failed to breach the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, ETH remains approximately 35% below its ATH.

On-chain analysis now reveals that Ethereum’s underwhelming performance is beginning to shake the confidence of its largest holders. According to an X post by crypto tracking account Lookonchain, some whales have started selling ETH at a loss.

Per the post, three wallets – likely controlled by the same whale – sold 10,070 ETH for 33 million DAI. The transaction was executed at a market price of $3,280, resulting in a $1 million loss for the whale.

Interestingly, this particular whale appears to be a seasoned market participant. In December 2024, the same entity withdrew 24,029 ETH – worth over $81 million at the time – from Binance. Despite the recent sale, the whale still holds 13,959 ETH, valued at $45.48 million at current prices.

Concerns also linger regarding the Ethereum Foundation’s recurring practice of selling ETH near market tops. A recent post by Spot On Chain revealed that the foundation has already sold some ETH in 2025. In 2024, the organization offloaded 4,466 ETH for $12.61 million, raising questions about its timing and strategy.

Can ETH Make Amends In 2025?

Although 2024 was lackluster for Ethereum in terms of price performance, 2025 holds promise, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the US Securities and Exchange Commission (SEC) recently approved the first hybrid BTC and ETH exchange-traded funds, signaling increased mainstream acceptance.

From a technical perspective, things also appear to be improving for Ethereum. Recent analysis highlights the formation of an inverse head-and-shoulders pattern on the 3-day chart, which could finally pave the way for ETH to break through the $4,000 resistance level.

Additionally, historical data indicates that Ethereum tends to outperform other digital assets during January following a US election year, adding to the optimism surrounding its price trajectory. At press time, ETH trades at $3,210, up 6% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com