Ethereum has re-entered a multi-year trading range, indicating continued weakness with minimal signs of bullish momentum. Currently hovering near the channel midpoint, technical indicators suggest the possibility of a full rotation back to the range low — a critical level that could either spark a significant bounce or lead to a historic breakdown.

Ethereum Price Action Signals Bearish Momentum

Ethereum’s price (ETH) is displaying warning signs as it struggles to maintain a bullish structure after falling into a key multi-year trading range. Following rejection at higher levels, ETH has adhered to a bearish pattern: re-entry into the range, a bearish retest, and now consolidation at the channel midpoint. While this midpoint is providing temporary support, the broader outlook remains overwhelmingly bearish, particularly on the weekly time frame.

Without clear signs of strength, Ethereum risks a deeper pullback toward the range low. Historically, this level has triggered strong expansions, but failure to hold could send ETH below $1,000 — a level not seen in recent history.

Key Insights:

  • Ethereum has re-entered a multi-year trading range, confirming a bearish structure.
  • Price is currently at the channel midpoint, struggling to establish firm support.
  • Failure to show strength increases the likelihood of a move to sub-$1,000 levels.

Multi-Year Range Behavior

Since June 2022, Ethereum has respected the boundaries of this long-standing trading range. After recently finding acceptance back within this range, price action confirmed weakness by retesting and rejecting the upper boundary — a textbook bearish retest. This rejection was followed by a slide to the channel’s midpoint, where ETH is now attempting to stabilize. However, there is no significant buyer activity yet, making the current bounce fragile and susceptible to further losses.

Potential Scenarios: Range Rotation and Breakdown

From a technical standpoint, a full rotation to the range low appears likely. This move would complete the range cycle, potentially allowing Ethereum to establish a more solid foundation for future upward movement. However, failure to hold support at the range low could result in Ethereum breaking below the critical psychological and historical level of $1,000 — a scenario that could greatly impact market sentiment.

“Price tends to complete business on both sides of a trading range before initiating a directional move.”

Currently, the lower end of the range remains incomplete, implying that further downside may occur unless Ethereum demonstrates strength quickly. Traders should closely monitor price behavior near the range low and look for bullish reversal patterns to gauge the next direction.

Trading Strategy for Ethereum

For traders looking to capitalize on this setup:

  • Watch for signs of strength at the range low, such as a swing failure pattern or a strong bullish engulfing candle. These could indicate a potential long setup.
  • Exercise caution if Ethereum breaks below $1,000, as this would invalidate bullish setups and require a reevaluation of the market structure and risk.

Disclosure: This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research and consult a financial advisor before making any investment decisions.

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