Ethereum, back to a crash market?..."It doesn't even give retail investors time to escape"

▲ Ethereum (ETH)/ChatGPT generated image

Ethereum (ETH) has entered a new period of decline, 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 been 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 major resistance levels.

The most critical turning point is the resistance zone between $2,300 and $2,400. Ethereum attempted to hold above short-term moving averages, 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 is forming a very vulnerable bearish continuation pattern.

Technical indicators are also increasing 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 early stages of recovery have now turned into resistance, pushing the price lower. As long-term moving averages are still sloping downwards, the overall trend remains very negative.

Volume imbalance indicates that selling pressure is dominating the market. According to data from Coinglass, an on-chain data analytics firm, participation decreased during recent attempts to rise. In contrast, activity significantly 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 mark, downward pressure is expected to intensify. Unless buying forces mount a decisive defense, the price is at significant risk of testing lower support zones. Currently, Ethereum has lost the momentum for a trend reversal and is defenselessly exposed to 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.*