Why Ethereum's Price May Continue to Decline

As we move past the weekend, Ethereum attempted a brief recovery alongside Bitcoin, but these efforts ultimately fell short. Crypto analyst DomicChaina sheds light on the current situation, explaining why Ethereum's price is unlikely to experience any significant recovery. It appears that the leading altcoin is more inclined to face a decline towards new monthly lows rather than staging a rebound.

Key Takeaways

Ethereum attempted to recover alongside Bitcoin, but these efforts have been unsuccessful.
Technical indicators point to a continuing bearish trend, with significant support expected at $2,500.
Resistance at $3,090 has halted previous recovery attempts, and declining volume suggests weak investor interest.
The upcoming holiday period is anticipated to further affect market liquidity and price movements for Ethereum.

By summarizing the key points and improving the clarity of the original content, this article is now more accessible for beginners interested in understanding the current state of Ethereum's price.

Technical Indicators Suggest Further Decline

The crypto analyst points to several technical aspects indicating that Ethereum's price is trapped in a bearish trend. A significant factor involves the EMA34 and EMA89 indicators. According to Chaina, the price's performance relative to these two exponential moving averages suggests that the downward trend is set to persist.

Notably, the EMA39 has crossed below the EMA84, and both moving averages are trending downward. This situation indicates that, despite any recovery efforts, Ethereum remains in a medium-term downtrend. Chaina emphasizes that current price movements seem to be moving sideways or entering a consolidation phase rather than trending upward.

For Ethereum to see a meaningful recovery, it would need to break out of its existing range. However, as long as this structure is maintained, it is anticipated that the altcoin will continue its decline, heading toward significant support at $2,500.

Ethereum price Source: TradingView

Strong Resistance Hinders Recovery

In addition to the overall downward trend, Ethereum faces significant resistance at the $3,090 mark, which coincides with the EMA34. This resistance level has thwarted previous recovery attempts, with the latest effort this week meeting the same fate. Additionally, with the EMA89 also trending downward, it indicates that the price is likely to face continued decline before any potential recovery.

The analysis further reveals a drop in trading volume, suggesting that capital inflows into Ethereum remain weak. Given the holiday season, this trend is unlikely to change, as many investors are stepping back from the market to engage in celebrations. "This week is part of a holiday period, which typically results in reduced market liquidity, leading to sluggish price movements and diminishing breakout potential," the post noted.

The short-lived recovery candles indicate a stifled recovery process, affecting any possible rallies moving forward. Currently, Ethereum continues to hover below the $3,000 mark, reflecting a 37% decrease from its all-time highs in 2025.

Ethereum price chart from Tradingview.com ETH struggles to recover | Source: ETHUSDT on Tradingview.com