In today’s analysis, let’s take a look at Ethereum (ETH), which has been struggling for a long time, with no positive catalysts to drive the price higher. Over the weekend, news emerged that Donald Trump proposed placing Ethereum in a special crypto reserve, which initially pushed ETH higher. However, all those gains have since been erased, reinforcing the negative sentiment surrounding Ethereum.
Currently, Ethereum is trading between two critical levels. The first key level is the blue resistance at $2,550, which previously acted as strong support in February, but has now turned into a resistance zone after being broken. The second key level is the red horizontal support at $2,070, which has been tested multiple times as a long-term support area.
Ethereum is now attempting to break below the $2,070 support, and there is no visible buying pressure to prevent further downside. If the price closes below this level, it would be a confirmation of a major bearish breakout, signaling further losses ahead.
The sentiment remains negative as long as Ethereum stays below the blue resistance at $2,550. The only scenario that could flip the sentiment to bullish would be a strong rebound and a breakout above the blue resistance, which would serve as a buy signal.
For now, Ethereum remains under heavy selling pressure, and the likelihood of a deeper decline is growing, with $2,070 at serious risk of breaking down. Traders should watch this level closely, as a confirmed breakdown would open the door for further downside movement.