The value of Ethereum has decreased by approximately 9% over the past seven days, and it continues to trade below the $3,000 level, which it has not reclaimed since February 1st. Recent technical indicators suggest increasing bearish momentum, with weakening trend strength and rising selling pressure.
Momentum indicators, such as the relative strength index (RSI), have sharply declined, while key resistance levels are holding firm against upward attempts. As Ethereum struggles to regain strength, traders closely monitor whether support levels will hold or if further declines are imminent.
Bearish indicators have gained momentum as the strength of the trend fades.
The directional movement index (DMI) for Ethereum shows a decline in the ADX to 20.83 from 27.64 two days ago, indicating weakened trend strength.
The ADX indicator, or average directional index, measures the strength of a trend, whether bullish or bearish. Values above 25 typically indicate a strong trend, while values below 20 indicate a weak or uncertain market.
As the average directional index (ADX) for Ethereum approaches the minimum, it indicates fading recent directional momentum, and the market may enter a period of sideways movement or indecision.
Ethereum DMI indicator.
Considering the trend indicators, the Ethereum +DI index dropped to 17 from 26.57 yesterday, after a brief rise from 16.62 two days ago. This indicates that upward pressure has quickly dissipated.
At the same time, the Ethereum -DI index rose to 26.22 from 18.60, indicating growing bearish momentum. This divergence between the declining +DI indicator and the rising -DI indicates sellers are in control, which may push Ethereum into a short-term bearish trend.
Alongside the weak ADX indicator, the current situation suggests increased downside risks unless the bulls regain control soon.
Ethereum faces pressure after a sharp reversal in the relative strength index (RSI).
The relative strength index (RSI) for Ethereum dropped to 46.2, sharply down from 61.82 yesterday, after rising from 38.14 two days ago.
The relative strength index (RSI) is a momentum oscillator that measures the speed and change of recent price movements to assess overbought or oversold conditions.
Generally, values above 70 indicate that an asset is overbought and may experience a pullback, while readings below 30 indicate an oversold condition that may precede a rebound.
The neutral zone is between 30 and 70, where price behavior is generally considered balanced or consolidated.
The relative strength index (RSI) for Ethereum is now at 46.2, retreating to neutral territory after briefly approaching the overbought zone.
This decline indicates a fading bullish momentum, and it may suggest a weakening of recent buying interest. While a reading close to 46 does not indicate an immediate reversal of the trend, it reflects a state of uncertainty and may open the door to further declines if selling pressure increases.
If the relative strength index continues to decline towards 30, it could confirm Ethereum's entry into a more pronounced bearish phase.
Ethereum struggles below the resistance level as the bearish exponential moving average trend continues.
The exponential moving average (EMA) lines for Ethereum currently indicate a bearish trend, as the price struggles to regain its bullish momentum.
Ethereum recently attempted to break through the resistance level at $2,679 but failed, confirming sellers' control over the market. If the market tests the support level at $2,479 and loses it, further declines may push Ethereum's price towards $2,386, potentially reaching $2,326 if selling pressure intensifies.
These levels represent key areas that buyers may turn to, but until then, the short-term structure leans towards the downside.
Ethereum price analysis.
However, a shift in momentum may occur if Ethereum retests the resistance level of $2,679 and successfully breaks through it.
A breakout above this level would be a strong signal for a bullish trend, which could trigger a move towards $2,790, and even $2,878 if the trend reversal continues. At that point, the structure of the exponential moving average (EMA) will begin to stabilize or bend upwards, indicating renewed strength.
Until that happens, Ethereum remains vulnerable to further losses, as traders closely monitor how it reacts to key support and resistance levels.
