Warning Signs for Ethereum: RSI Trendline Breaks as Double Confirmation Looms

Ethereum is showing early signs of potential market weakness as momentum shifts. The break in the RSI trendline for the USDT pair indicates a weakening strength, while the ETH/BTC pair also appears poised to follow this trend. A recognizable breakdown pattern is forming, which increases the risk of a double confirmation that could lead to a sharper decline.

Key Takeaways

Ethereum is showing signs of weakening momentum with the RSI trendline break.
The ETH/BTC pair is on the verge of a similar trend.
A significant market breakdown appears imminent, akin to recent patterns seen with Solana.
A major options expiry event on Wall Street adds to the current market tension.
Confirmation from the ETH/BTC pair could trigger a decisive downward movement.

Ethereum

RSI Trendline Break Signals Weakness for Ethereum/USDT

Recent analysis by Umair Crypto highlights that the USDT pair of Ethereum has experienced a break in its RSI trendline, indicating a significant shift in momentum. Many anticipate that the ETH/BTC pair will soon mirror this behavior, suggesting that a new lower low is not a matter of if, but when.

This pattern reflects a similar series of events that occurred with Solana, where a break in the USDT pair’s RSI trendline preceded an eventual breakdown in the BTC pair, which initially maintained strength. Ethereum now seems to be repeating this scenario, potentially leading to another breakdown.

Ethereum Source: Chart from Umair Crypto on X

Although the ETH/BTC pair currently remains stable, analysts caution that this stability may be short-lived. Should the BTC pair lose its ground, the combined lack of support in both pairs could prompt a significant downturn. This situation reflects one of the most volatile scenarios for an Ethereum market breakdown.

Holding Strong Under Pressure: But at What Cost?

The analyst notes that Bitcoin and Ethereum have both displayed considerable strength amid the broader market volatility. While this resilience is commendable, it has not come without consequences. Instead of establishing a solid foundation, the market seems to be operating on borrowed time. The evident fatigue displayed in the charts suggests that the repercussions of this strength are beginning to materialize. Thus, a dip toward a lower low should not come as a surprise.

Additionally, a major catalyst is contributing to the market tension: over $2.1 billion in BTC and ETH options is set to expire today, coinciding with Wall Street's massive $5.7 trillion Triple Witching event. Although such large expirations don’t directly dictate market direction, they often amplify existing momentum. Given that the foundational structure already leans toward the downside, any resulting movement could be escalated under current conditions.

The breakdown sequence now appears increasingly defined. The USDT pair was the first to demonstrate weakness, losing vital structure and signaling a shift in momentum. The focus is now on obtaining confirmation from the ETH/BTC pair. Once this confirmation occurs, it typically results in a more determined and aggressive downward movement as bearish pressure asserts control completely.

Ethereum ETH trading at $2,169 on the 1D chart | Source: ETHUSDT on Tradingview.com