"Thought it would rise this time"...Is Ethereum's recovery to mid-$2,300 a trap?

▲ Ethereum (ETH)

Ethereum (ETH) is losing momentum again after a brief attempt at recovery. Recent charts show a bearish shooting star pattern forming, which could exert new pressure on the short-term price trend.

According to cryptocurrency media outlet U.Today, Ethereum attempted to stabilize its price in recent weeks after undergoing a significant correction earlier this year. The price, which recovered its short-term moving average, at one point returned to the mid-$2,300 range. This trend raised hopes that Ethereum could challenge higher resistance levels again, but current momentum appears to be slowing.

On the chart, a shooting star pattern is appearing just below the major resistance line. This pattern typically forms after an upward movement. Initially, buying pressure pushes the price up, but then selling pressure takes over, pushing the price down near the top of the candle. This is interpreted as a warning sign that bullish momentum may weaken before a successful breakout.

Ethereum's overall structure also remains unstable. The 100-day Exponential Moving Average (EMA) is acting as resistance from above, and the price remains below the 200-day Exponential Moving Average (EMA). Major rebound attempts in recent months have all failed to sustain follow-up buying, and Ethereum continues to make lower highs in the long-term timeframe.

Trading volume also remains relatively low compared to previous expansion phases. Currently, Ethereum appears to be closer to a market attempting price stabilization rather than one poised for a strong upward cycle.

The internal rotation of funds within the cryptocurrency market is also a burden for Ethereum. Traders are still chasing faster-moving sectors such as meme coins, privacy assets, and Telegram-related ecosystems. Ethereum's movements have appeared slow and lacking explosive power compared to these sectors, and short-term speculative demand has weakened accordingly.

However, if Ethereum reclaims its resistance level and invalidates the shooting star pattern, investor sentiment could improve rapidly. Currently, the market is reacting more cautiously to the possibility of a failure to break resistance than to a rebound in Ethereum.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*