- Ethereum is testing the $2,140 level after the week’s low near $2,070.
- CryptoQuant reports that a technical breakdown increases the risk of a sharp drop to $1,350.
- Bullish catalysts could include regulatory clarity and continued institutional demand.
Ethereum (ETH) briefly traded above the $2,100 level on Wednesday after rising nearly 1% over the past 24 hours as Bitcoin reclaimed the $77,200 mark.
While the recovery has provided some relief to the bulls, the altcoin remains under pressure after the sharp weekly decline.
Technical indicators continue to point to higher downside risks, with some analysts warning that ETH could face a deeper correction towards the $1,350 level.
Ethereum price today
Market data during the US session on Wednesday showed Ethereum testing the $2,140 area after rebounding from intra-week lows near $2,070.
The recovery came after several sessions of heavy selling, although ETH remains well below its recent highs.
Ethereum is currently trading down approximately 7% on the week and down approximately 28% year to date.
The Relative Strength Index (RSI) is hovering near oversold territory, which could indicate conditions for a comfortable rebound in the short term.
However, Ethereum continues to trade below all of the major moving averages on the daily chart, indicating that bearish momentum still prevails.
Can ETH Drop to $1,350 After Bearish Breakdown?
One of the main concerns for bulls is Ethereum breaking down below the support trend line of the triangle pattern.
The recent sell-off confirmed the structural collapse on the daily chart, raising concerns that the price action may reflect a similar technical failure earlier this year.
At the time, Ethereum’s price fell sharply from the $2,800 to $3,000 range, falling nearly 35% over several days in February. If similar market conditions develop again, analysts warn that selling pressures could intensify.
Analysts at CryptoQuant highlighted downside risks in a recent market note.
“If Ethereum fails to recover the broken triangle structure, selling pressure may accelerate further, and the price may target the $1,350 support level,” CryptoQuant author and analyst Pelin Ay books.
Macro conditions and weak market flows have also put further pressure on Ethereum’s price outlook.
Ethereum’s recent weakness follows Bitcoin’s lack of momentum more broadly, with Bitcoin falling towards the $76,000 region in recent sessions.
Meanwhile, Ethereum ETFs recorded seven consecutive days of net outflows.
Continued outflows have heightened fears that the recent technical collapse could develop into a longer-term downtrend.
Contrasting viewpoints and potential levels of support
Not all market participants remain bearish on Ethereum’s long-term outlook.
Bitmain’s Tom Lee said the recent pullback could represent a “buy low” opportunity, especially since Bitmain’s treasury holdings now exceed 4.37% of the circulating supply of Ethereum.
Some bullish investors continue to point to longer-term catalysts, including the growth of stablecoins on Ethereum, increasing staking adoption, and expanding interest in tokenized real-world assets (RWA).
Market participants are also monitoring regulatory developments that could impact broader institutional adoption trends over time.
In the near term, traders will be closely watching whether buyers can push ETH back above the $2,200-$2,400 resistance zone.
Failure to reclaim this range could expose the token to another decline below $2,000, with some analysts identifying $1,350 as a potential downside target.
