Ethereum on the Brink: Is a Sub-$1,000 Drop In the Air?
The crypto market is seeing worrying signs from Ethereum (ETH) as the world’s second-largest coin returns to a familiar multi-year trading range – this time in a weaker mood and without any clear upside momentum.
Return to ‘Danger Zone’: Ethereum Loses Recovery Momentum
Ethereum is currently trading in a price range that has been established since 2022, after being rejected at higher resistance levels. The return to this price range is confirming a classic bearish pattern:
Breaks out of the highs,
Gets rejected,
Returns to range,
Retests midpoint,
And now weakly consolidates.
ETH’s current position is at the midpoint of a multi-year trading channel that has acted as temporary support in the past. However, weak price action and lack of new money flow make the current recovery more fragile than ever.
Risk of a “free fall” below $1,000?
On the long-term (weekly) timeframe, Ethereum has not shown any signs of a sustainable recovery. If it does not regain strength soon, ETH could continue to slide to the lowest support level in the range – a level that has generated strong momentum in the past.
However, if that support level fails this time, Ethereum is likely to break below the important psychological level of $1,000 – a price level not seen since the market crisis in mid-2022.
Technical analysis: Clear warning
From a technical perspective:
The multi-year trading range is gradually closing a complete cycle.
It is common for price to “work” both sides of the range before a directional breakout.
Currently, the lower testing activities are not yet complete, making the possibility of ETH returning to the bottom area completely reasonable.
Trading strategy: Observe – Wait – Act selectively
In the current situation, traders need to have a clear plan:
Closely monitor the low support area in the range (the bottom area near $ 1,000 – $ 1,100).
Look for strong reversal signals, such as a “swing failure” pattern or a “bullish engulfing candle” pattern in this area to consider buying.
If the price breaks below $ 1,000, it is advisable to pause the uptrend, reassess the market structure and reconsider the risk.
Summary: ETH is on a tightrope – any deviation could cause a “breakout”
Ethereum is at an important turning point. The bearish structure is becoming more and more obvious, while the buying pressure from the buying side has almost disappeared. Without a decisive bounce from the low support zone, the prospect of a drop below $1,000 is no longer far-fetched.
This is the time for the market to be sober, not adventurous.
