Ethereum (ETH) is at risk of losing important support as bearish pressure increases.

Ethereum (ETH) fell nearly 9% in the past week, continuing to remain below 3,000 USD — a milestone it has not been able to reclaim since February 1. Recent technical signals indicate that the downward momentum is increasing, as the trend weakens and selling pressure becomes more pronounced.

Momentum indicators like RSI have sharply declined, while important resistance levels remain firmly in place, hindering recovery attempts. In the context of ETH still struggling to regain growth momentum, investors are closely monitoring support levels to determine whether the downtrend will continue.

The fall of the price increases as the trend weakens

Ethereum's Directional Movement Index (DMI) indicator shows that the ADX index – which represents trend strength – has fallen from 27.64 to 20.83 in just two days. As a technical principle, an ADX below 20 reflects a weak trend or an indecisive market, while above 25 indicates that the market is trending well.

The weakening of ADX indicates that the previous upward momentum is fading, while also signaling the possibility of Ethereum entering a sideways phase or a correction lacking clear direction.

Source: TradingviewAt the same time, the +DI index – representing buying pressure – has decreased from 26.57 to 17, after a slight increase from 16.62, indicating that the upward momentum only lasted for a short time before weakening again. In contrast, the -DI index – representing selling pressure – has increased from 18.60 to 26.22, indicating that the sellers are gradually taking control.

The divergence between the decreasing +DI and the increasing -DI, along with a weakening ADX, is a signal indicating that the risk of a short-term price decline is increasing if the buyers do not regain control soon.

RSI has sharply fallen back, clear adjustment signal

The Relative Strength Index (RSI) of Ethereum has fallen sharply from 61.82 to 46.2 – a notable reversal after the RSI had previously surged from 38.14.

RSI is a tool for measuring the strength of a trend through the rate and magnitude of price fluctuations. An index above 70 typically signals that an asset is overbought, while below 30 indicates oversold conditions. The range from 30 to 70 is considered neutral, reflecting a state of balance or accumulation of price.

Source: TradingviewThe RSI returning to neutral territory reflects a decrease in bullish momentum and a more cautious market sentiment. Although the level of 46.2 does not yet indicate a definitive reversal, if the RSI continues to decline towards the 30 mark, it could confirm a clearer downtrend is forming.

EMA trend remains negative, resistance has not yet been broken

The exponential moving averages (EMA) continue to indicate a downtrend as the price action fails to break through key resistance levels.

Recently, ETH has failed in its attempt to break the threshold of 2,679 USD – further reinforcing the view that selling pressure still dominates the market. If the support level at 2,479 USD is broken, ETH could continue to fall to the range of 2,386 USD, and in a more negative scenario, to 2,326 USD.

These are all price zones where buying power may return, but until that happens, the short-term technical structure still leans towards a bearish trend. However, the momentum could change if Ethereum successfully retests and breaks the resistance level of 2,679 USD.

A breakthrough above this level would be a strong signal of intent to rally, potentially triggering a move towards $2,790 and even $2,878 if a reversal trend occurs. The EMA structure would then start to flatten or curve upwards, indicating new strength.

However, until that happens, ETH remains more vulnerable, with traders closely monitoring how it reacts around key support and resistance levels.

Mr. Teacher