In today’s crypto news, Ethereum is facing growing downside pressure after confirming a bearish technical breakdown, according to a new CryptoQuant analysis.
CryptoQuant analyst PelinayPA stated that Ethereum’s recent breakdown below a major triangle formation signals that market momentum is increasingly shifting in favor of sellers. The analyst also pointed to weakening moving averages and rising liquidation pressure as signs that the broader market structure is deteriorating. The warning comes as Ethereum trades near the $2,100 region following weeks of volatile price action across crypto markets.
Ethereum Breaks Below Key Support as Liquidations Rise
According to the CryptoQuant report, Ethereum recently broke below the lower boundary of a multi-month triangle consolidation pattern. That move marked a significant technical breakdown and suggested that the previous consolidation phase may now favor bearish momentum. While the breakdown alone does not fully confirm a bearish market structure, several additional indicators strengthen the thesis.
Short-term moving averages trend below long-term moving averages, signaling weakening momentum. At the same time, the longer-term blue moving average on the chart has begun to slope downward, which often reflects a broader trend deterioration.
PelinayPA also combined the technical analysis with Binance liquidation data. Since Binance is one of the world’s largest Ethereum derivatives exchanges, liquidation activity there provides insight into overall market positioning. The report observed several sharp, long liquidation spikes during Ethereum’s recent weakness. Those liquidation clusters suggest leveraged bullish traders are getting forced out of positions as downside pressure increases.
Importantly, Ethereum has failed to produce strong rebounds after those liquidation events. That inability to recover has strengthened the bearish interpretation of the current market structure. Ethereum could revisit the $1,350 support zone if sellers maintain control and ETH fails to reclaim the broken triangle structure. Meanwhile, it would still need sustained weakness and repeated failed recovery attempts for the deeper correction target to become increasingly likely.
Macro Pressure Continues Weighing on Crypto Markets
Ethereum’s weakness comes amid broader macroeconomic uncertainty across financial markets. While the token is up 1.63% today, it is still down by 5% on the weekly timeframe. It is also over 7% down on the monthly timeframe.
Recent CoinRemark coverage highlighted rising inflation concerns, stronger-than-expected CPI and PPI data, and growing fears that interest rates may remain higher for longer. Those conditions have pressured risk assets globally, including cryptocurrencies.
The broader crypto market has already experienced heavy deleveraging in recent weeks. Reports showed more than $563 million in long crypto positions were liquidated during a large wipeout earlier this week. Therefore, traders will remain cautious as Ethereum attempts to stabilize in the coming weeks.
Temitope Olajide
