Ethereum is approaching a critical technical crossroads as bearish momentum continues to impact price action. With the main support zone now under intense pressure, investors are closely watching whether the bulls will be able to defend this level or whether a breakdown will open the door to a deeper decline.

Bear Flag Failure Keeps Ethereum Under Pressure

Ethereum continues to decline, matching the broader bearish sentiment currently dominating the market. According to analysis by More Crypto Online, the asset’s recent breakout from the previously identified bear flag, and the rejection of the yellow trendline strengthen the hypothesis that the significant rally in Wave B peaked in April. These technical failures send a robust signal that the prevailing trend remains firmly down.

The leading scenario currently suggests Ethereum is advancing within a larger C wave decline, with major support levels pegged at $1,550 and $1,400. Although price has already started to react from the first support area, investors should remain cautious as bear market cycles often include corrective rallies that can unexpectedly emerge from these support zones.

In terms of risk management, any potential recovery attempt is expected to be purely corrective in nature as long as the price continues to hover below the yellow trend line. A stronger recovery, however, would require bulls to break down significant resistance levels and essentially invalidate the current bearish framework. At this stage, such a reversal lacks the necessary validation and market power.

Ultimately, Ethereum remains in a definitive bearish trend after breaking out of the bear flag formation. With support levels at $1,550 and $1,400 currently in focus, the structural framework continues to favor lower price action over an immediate reversal.

ETH reaches critical decision zone

MarketMaestro cryptocurrency analyst excellent in post X that Ethereum has successfully held both its long-term support trendline and the key Fibonacci support level on the monthly chart. According to the analyst, the current price zone has become a critical battleground between a routine correction and a much deeper structural decline.

A one-month close below the current support area would significantly weaken Ethereum’s technical outlook and enhance the risk of a broader collapse. On the other hand, if support continues, the recent pullback could still be viewed as a solid correction in the long-term asset bull market.

Moreover, if Ethereum manages to hold support, form a wick on the monthly candle, and rebound from current levels, it would suggest that buyers are aggressively accumulating on the dip and treating it as a high-value entry zone.

Despite the possibility of economic recovery, MarketMaestro cautioned that the stakes remain high. A decisive break below support could force Ethereum into a prolonged bottoming process, potentially extending the period of weakness before a sustained uptrend.