Ethereum has been in a steady downtrend for over a month, carving out a bearish technical pattern that suggests it may face further losses. Since October 28, the price has fallen 29%, extending its drop from the year-to-date high to 41%. Despite a minor recent rebound, the overall market structure appears weak.

Broader Market Pressures

Ethereum’s decline is part of a wider market correction that saw Bitcoin fall significantly from its recent highs. The downturn was fueled by macroeconomic concerns, particularly a hawkish statement from U.S. Federal Reserve Chair Jerome Powell regarding interest rate cuts, which prompted a flight from riskier assets.

This negative sentiment was reflected in the Crypto Fear and Greed Index, which plunged to a level of “Extreme Fear” by mid-November. The widespread anxiety triggered a cascade of liquidations, adding selling pressure across the market. Compounding the issue, demand for spot Ether Exchange-Traded Funds (ETFs) has faded, with data showing net outflows of over $2.1 billion from nine U.S. products since mid-October.

While some entities have continued to accumulate Ethereum, the broader investor sentiment remains fragile. With momentum weak, the asset could easily slip to lower support zones if selling pressure continues.

Ethereum Price Analysis

On the daily chart, the price action since early October has formed a multi-month rounded top, a pattern that often precedes extended bearish momentum. A similar formation on Solana’s chart, for example, was followed by a price plunge of nearly 50% from its September high.

Currently, Ethereum is testing a potential breakout from this pattern after turning the $2,750 level into support. However, even a successful breakout could form the “handle” of an inverse cup and handle pattern—an even more severe bearish continuation signal that could concern short-term traders.

The next critical support level to watch is $2,230. This price point has previously acted as a strong demand zone, providing a solid base for rebounds. A drop to this level would represent a decline of approximately 24% from its current price.

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