Saad Ullah
Ethereum's been struggling lately, steadily losing ground as bearish momentum keeps the pressure on. Traders are getting cautious, but many believe this could be the final shakeout before a recovery begins.
What the Chart is Showing
Crypto analyst Crypto Tony suggests ETH may need to "drop a little further" before finding solid footing. The developing "W" pattern on the chart hints that the next move could decide whether Ethereum bottoms out here or keeps sliding.
Ethereum is trading around $3,500 on the Coinbase chart, stuck in a steady downtrend since mid-October. Here's what stands out:
- Downtrend still holding: Every bounce gets rejected below $4,200, showing bulls can't regain control yet
- Next support zone: The $3,350–$3,400 range is where ETH could find buyers—the same area that held back in August
- The "W" formation: If Ethereum dips to that support and holds, it would complete a double-bottom pattern—often a bullish reversal signal
- Resistance ahead: A recovery would need to break $3,700 first, then push through $4,200 to confirm the trend has flipped
Why Ethereum's Pulling Back
This isn't just about ETH. Bitcoin's been hogging attention near its highs, pulling money away from altcoins. Plus, after months of gains, the market's taking a breather—resetting momentum and clearing out overbought conditions. Traders are rotating into safer positions while they wait for clarity.
That said, Ethereum's fundamentals are still solid. Layer-2 networks like Arbitrum, Base, and Optimism keep growing, which supports the longer-term bullish case once this correction runs its course.
Saad Ullah
