Ethereum's price action is showing significant weakness, with the asset struggling to reclaim the $2,150 resistance level. The cryptocurrency is currently holding near a critical support zone around $2,030, but repeated failures to break higher are emboldening bearish sentiment. Market structure indicates growing pressure, with the formation of lower highs signaling weakening upside attempts.
Analysts are now warning of a potential deeper correction. Crypto analyst CrypticTrades highlighted that ETH has broken below a multi-month support level at $2,1K, which had long served as a high-timeframe bottoming zone. This breakdown opens the door for a slide toward a deeper support area, aligning with the early-April 2025 bottoming formation. The analyst noted that the $2.1K level has now inverted from support to become a ceiling, a clean signal that the previous bottoming formation has failed.
Market signals remain mixed and cautious. Derivatives and spot flows indicate weak trend momentum and hesitant accumulation. Furthermore, the Ethereum Foundation's staking and sales activities are seen as reflecting a balanced treasury management strategy rather than a directional market signal. ETH has now shed over 60% from its 2025 peak, trading below the levels where much of the 2024 accumulation occurred, which complicates a swift recovery.
The analyst's plan is to begin scaling out of defensive hedges only once the price enters the identified green support zone, at which point capital would rotate back into spot holdings. Until then, the setup is described as favoring further near-term downside, with the next few days being critical for determining whether the deeper support will hold.
