Ethereum (ETH) continues to face significant bearish pressure, with technical analysis and market sentiment pointing towards a prolonged downtrend until a key parabolic resistance level is decisively broken. Analyst Mizer, using an inverted chart technique, visualizes a persistent bearish structure for ETH, which has been in a downtrend since its peak near $5,000.
The analysis highlights a parabolic curve that has acted as formidable resistance for months. Until Ethereum can break and hold above this curve, the broader downtrend is considered intact. The current price action suggests two potential scenarios: a continuation after a shallow pullback or a brief fake breakdown followed by a swift reclaim before the next move lower. On the inverted chart, a higher move translates to lower actual ETH prices.
Target levels are set around $1,700 for a potential profit-taking area, with a final bearish target near $1,400. The setup would be invalidated if ETH loses a key "flip zone" on the inverted chart, breaking the parabolic resistance and potentially signaling a trend reversal. Mizer acknowledges the difficulty of higher time frame forecasting in the current macro environment, preferring to focus on lower time frame opportunities.
Concurrently, market tension is intensifying. Ethereum is trading near $1,975, down nearly 60% from its October 2025 peak. Prediction markets on Kalshi reflect growing bearish conviction, pricing roughly a 49–50% probability of ETH dropping to $1,250 by 2026, with nearly 30% odds extending below $1,000. This sentiment is fueled by concerns over ETF outflows, institutional selling pressure, and doubts about Layer 2 value accrual.
Despite the pessimistic outlook, Ethereum's higher timeframe structure remains technically intact, with a bullish pennant formation still in play. The immediate and critical structural support zone lies between $1,513 and $1,537. A failure to defend this level would decisively invalidate the bullish macro pattern. Liquidity analysis from CoinGlass shows that most downside liquidity has been cleared, while substantial liquidity clusters remain above the current price, extending toward the $5,000 region, creating asymmetric risk for short positions.
The market is in a decisive confrontation phase where bearish sentiment clashes with persistent structural integrity. The $1,513 support level is the defining threshold; a breakdown would validate the bearish predictions, while a successful defense could trigger a short squeeze and force a rapid unwinding of bearish positions.
