Ethereum Price Breakdown: Will ETH Crash to $1,600 or Rebound?

Ethereum’s price faces mounting pressure after the decreased support of a symmetrical triangle, a pattern that frequently signals the continuation of an existing trend. Analysts flagged this breakdown as a key bearish indicator, mainly after ETH failed to hold above $1,820. According to market analyst Bit Bull, asset risks have further declined, reaching $1,600. This breakdown has already caused new short positions, reflecting how technical traders are preparing for another down.

The ETH technical analysis of this sample reveals a lack of bullish momentum following the breach. Instead of recovering quickly, Ethereum failed to appeal to volume-driven buying, indicating weak sentiment among traders. Test of the triangle’s decreased band did not result in a reversal, which confirms the bearish outlook. As assets struggle to regain value, a triangle breakdown is a crucial indicator of the continued short-term pullback risk of Ethereum.

Bearish Patterns Extend to the ETH Dominance Chart

In addition, concerns are represented by the descending triangle in the ETH dominance chart, another sign often associated with bearish market phases. This pattern, when aligned with symmetrical triangle breakdowns, strengthens the technical support for a downtrend. Analysts advise that Ethereum’s dominance in the broader cryptocurrency market may weaken, especially if altcoins begin showing stronger performance. This shift would limit capital inflows to Ethereum and lower prices as merchants reallocate funds.

Chart 1: ETH/USD, published on TradingView, 6th April,2025.

The dominance triangle indicates that Ethereum could lose its market share if it fails to sustain strong momentum. ETH technical analysis of the dominance chart aligns with price movement trends, thereby reinforcing the view that Ethereum may experience persistent behaviour. With institutional buyers showing a cautious outlook and the absence of a robust bullish catalyst, traders remain cautious about further declines. If dominance falls with price, it may accelerate an accelerated move toward the projected zone of $1,600.

On-Chain Data Confirm Weak Fundamentals

Although technical factors are a downside, on-chain data further confirms the bearish outlook for Ethereum. The main red flag is the notable decline in potential addresses across the network, which reflects a decline in consumer engagement. A drop in user activity regularly correlates with price declines because reduced interplay, signals investor confidence. In addition, Ethereum has seen a reduction in price, lowering its deflationary attraction since the implementation of EIP-1559.

Another concern is the amplification of Ethereum supply since the merger, which contradicts expectations that ETH will be deflationary over time. Rising supply undermines bullish long-term narratives and may discourage large-scale accumulation. The combination of a weak rate, falling address activity, and growth contributes to a forecast. On-chain data supports the fact that Ethereum’s price should remain under pressure unless these metrics begin to increase significantly.

Support Zones Offer Possible Rebound Opportunities

According to Standard Chartered, Ethereum could still rally to $4,000 by the end of the year, although this target was revised down from $10,000 due to market conditions. Despite this bare setup, Ethereum is still clinging to a critical support zone of approximately $1,800. This trend has been a key point in recent weeks, and analysts continue to be hopeful that it might hold long enough to provoke a reversal. 

A strong resistance of $1,800, coupled with renewed purchases from whales and institutions, should provide the momentum needed for recovery. Current buying and selling volumes of nearly $7 billion show favourable level of interest, although investor sentiment remains cautious. Any upward move would likely require a shift in on-chain statistics and improvements in ETH technical analysis patterns. Without these changes, bullish projections may remain unattainable.

Ethereum Faces Crucial Juncture

Ethereum price is navigating a highly essential phase as it hovers near the main support levels following a bearish breakdown. The technical charts are bleak, with symmetrical and descending triangles pointing further down. Simultaneously, on-chain statistics suggest warning signs and weakening fundamentals, both of which should accelerate a move down to $1,600.

However, not all hope is lost. If $1,800 of support holds and investor sentiment rebounds, Ethereum could avoid deeper losses and potentially recover in the long term. For now, merchants should closely monitor technical setups and on-chain statistics to predict the direction of Ethereum price in the coming weeks.

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