Ethereum (ETH) has faced a disastrous performance this cycle, failing to reach a new all-time high and shedding 50% of its value from its cycle peak. Last week’s breakdown below a long-term ascending support trend line signals potential trouble ahead for ETH, especially as the market digests the implications of the first White House crypto summit.
Ethereum’s Price Drop: A Bearish Signal?
Ethereum has officially lost its long-term support after maintaining it for an astonishing 994 days. The break below this critical trend line suggests the broader bullish momentum could be over.
To further emphasize the bearish case, ETH dropped below the key $2,300 support level, marking a new low for 2025 at $1,989—its lowest since November 2023. Historical price action suggests that once ETH breaks such crucial levels, further downside becomes likely.
ETH Breakdown: What the Charts Indicate
Technical indicators paint a bleak picture for Ethereum’s short-term future. The Relative Strength Index (RSI) has dropped below 50, confirming bearish momentum. Meanwhile, the Moving Average Convergence Divergence (MACD) has slipped into negative territory, suggesting that the downtrend could continue.
If the decline persists, the next significant support level sits at $1,200—a price point not seen since early 2023. A breach of this level could accelerate losses, pushing Ethereum into uncharted bearish territory.
Ethereum’s Outlook for 2025
Long-term wave analysis indicates that ETH may have completed its five-wave bullish structure between 2019 and 2021. If correct, the current downtrend could be part of a larger corrective phase, targeting as low as $760. Such a decline would break below previous cycle lows and signal an end to the correction before a potential bullish reversal.
However, if Ethereum manages to reclaim the long-term trend line, a relief rally could be in store. Yet, given the choppy price action within the descending parallel channel, a return to bullish momentum remains uncertain.
Also Read: $3 Billion in Bitcoin and Ethereum Options Expire: Will BTC Hold or Drop Further?
Ethereum’s underperformance over the past two years does not inspire confidence. The recent breakdown below critical support levels suggests that further downside is likely throughout 2025. Investors should prepare for more volatility as ETH struggles to regain its footing in an increasingly uncertain crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
