Bearish Signal Emerges For Ethereum As US Spot Demand Fades
Ethereum has once again failed to hold above a critical resistance zone, retracing from the $3,300 level back toward the $3,100 area. The pullback highlights the market’s ongoing struggle to establish a sustainable recovery, as bullish momentum continues to fade near key technical thresholds. While buyers have managed to prevent a deeper correction for now, the inability to reclaim higher levels has reinforced a cautious tone across the market. From a technical perspective, ETH remains below its key moving averages. The 50-day moving average is sloping downward and continues to cap upside attempts, while the 100-day and 200-day moving averages sit higher, reinforcing a heavy overhead supply zone between roughly $3,300 and $3,600. Each rally into this region over recent weeks has been met with renewed selling pressure, highlighting persistent distribution.Related Reading
The sequence of lower highs since the October peak near $4,700 remains intact. Although price has stabilized compared to the sharp November sell-off, the rebound so far resembles consolidation within a bearish structure rather than a new impulsive move. Volume has also moderated during recent advances, suggesting limited conviction behind the bounce.
On the downside, the $2,900–$3,000 range stands out as a critical support area. A sustained break below this zone would expose Ethereum to a deeper retracement toward the mid-$2,600s. For bullish momentum to regain credibility, ETH must reclaim $3,300 with strength and hold above the declining moving averages. Until then, the chart argues for caution, with downside risks still present despite short-term stabilization.
Featured image from ChatGPT, chart from TradingView.com
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