Ethereum’s (ETH) price movements recently indicated potential weakness as per market analysts. Ethereum was trading at $2,114 as of press time, after dropping by over 13% from its previous seven-day average price level.
Analyst Ali Martinez believes Ethereum is approaching critical price levels as its value dropped below $2,114 thus putting it at risk of testing $1,250 in the next weeks.
However, prices seem to be back on the move as the token now trades 1% above the previous 24 hour price.
Ethereum’s Intial Price Drop and Market Performance
The intital Ethereum price decline happened parallel to a general market decline. CoinMarketCap data demonstrates that Ethereum decreased in value from $2,276 to stabilize at $2,100 before the slight recovery.
Ethereum’s market capitalization also jumped to $258 Billion while trading volume increased by 2.85% to reach $34.21 Billion.
Higher market activity generates elevated trading volume according to market observation. The sharp market swings during the past few days stem from shifting market emotions mainly stirred by the Bybit hack.
The price volatility indicates severe market doubt. The market now attempts to hold its position around $2,100.
Recent market conditions have made Ethereum resist price growth at multiple levels. The $2,400 and $2,600 resistance levels demonstrate buying resistance.
This is evidenced by the price’s inability to breach through these barriers in the current market condition.
The resistance indicates that Ethereum remains confined within a tight trading zone. This is where buyers actively battle against sellers near these price points thereby creating a negative trading environment.
Ethereum Price Breaks Parallel Channel
Technical indicator predicts additional downward price movement which strengthens bearish investor trends.
The parallel channel breakdown demonstrates Ethereum’s declining upward direction and signals additional downward pressure in the market.
The four-hour chart provides clear evidence of lowering trend lines that create a falling wedge pattern.
Ethereum shows signs of continued downward movement through the breakdown from its parallel channel.
This points toward additional short-term price declines before possible price recovery can occur. The current market conditions and resistance levels indicate a probable shift of Ethereum price to $1,800.
Due to strong resistance patterns any advance from this pattern could potentially become limited. Ethereum encountered persistent resistance at $2,400 while $2,600 stands as its most important resistance point.
However, the current recovery over the last day could stir up renewed bullish momentum. The price facing resistance at its current levels might prevent a meaningful uptrend for Ethereum thus sustaining downward pressure.
Recent assessment of the Awesome Oscillator (AO) demonstrates the continuous bearish market direction.
The negative AO reading verifies that downward momentum keeps gathering strength while the Ethereum price shows a match.
The market shows evidence that prices may continue descending. This is because sellers currently dominate markets thus intensifying the bearish trend.
Howver, despite this bearis outlook, the AO could turn positive. This will signal an emerging change in momentum that may lead to a larger price reversal.
Source: https://www.thecoinrepublic.com/2025/03/05/ethereum-eth-price-can-fall-to-1250-if/