Ethereum has dropped nearly 5% to around $2,200 on Thursday, extending its losing streak to four consecutive days. The latest move comes after a confirmed breakdown below a key ascending trendline, increasing the likelihood of further downside in the near term.
Summary
Ethereum fell 5% to near $2,200 after facing rejection at $2,400, marking its fourth straight day of losses.
A breakdown below a crucial ascending trendline signals a shift in momentum toward sellers and raises downside risk.
Bearish indicators are strengthening, with Aroon Down at 92.86% and a MACD crossover pointing toward a potential move to $2,000.
Ethereum has been under pressure since bulls failed to push past the $2,400 resistance level on April 27. At the time of writing, the asset is trading near $2,256, down roughly 2.6% over the past week.
The decline has been fueled by broader market uncertainty, including delayed U.S.–Iran peace talks and the Federal Reserve’s continued hawkish stance on interest rates.
Trendline breakdown signals weakness
On the daily chart, Ethereum has broken below an ascending trendline that had supported its price action since late March. This level had repeatedly acted as a foundation for rebounds, making the breakdown a significant technical shift.
With this support now lost, selling pressure is expected to intensify as market sentiment tilts further in favor of bears.
Indicators confirm bearish momentum
Technical signals also point to growing downside risk. The Aroon Down indicator has surged to 92.86%, while Aroon Up has dropped sharply to 7.14%, highlighting strong bearish dominance.
At the same time, a bearish MACD crossover has formed, reinforcing the negative momentum. A similar setup in mid-January led to a steep 45% correction within a month.
Key levels to watch
Given the current setup, Ethereum appears likely to test the $2,000 support level in the near term. A break below this level could trigger a deeper correction.
On the upside, reclaiming the $2,400 resistance zone would invalidate the bearish outlook and potentially signal a reversal in trend.
