Ethereum has entered a technically sensitive period after posting its sixth consecutive monthly close of decline. While the price has been around $1,930 in recent days, weakness in upward movements and a significant increase in selling pressure are noteworthy. Ethereum, which has an important place in the cryptocurrency market, is known for its wide user base as a leading blockchain network that provides infrastructure for decentralized applications.
Sustained Falls Sign Strong Weakness
Analyst TedPillows pointed out that Ethereum had its monthly close in the red for six months in a row. He points out that Ethereum has entered a period of prolonged weakness, with negative closes in twelve of the last fifteen months. Chain series of declines standardly indicate a generally bearish environment before a major reversal. This type of prolonged negative processes means that the price has difficulty recovering in the short term; It indicates that the tendency to distribute is stronger than the tendency to accumulate.
$1,700 Level Is Watched in Technical Analysis
According to Crypto Chiefs’ analysis, the price must rise above the $1,940 level for the rise to regain momentum. Unless this resistance is overcome, downward pressure may continue; It stands out that there is a high risk of testing the $ 1,800 and then $ 1,700 support zones. Within the framework of the structure reflected in the chart, the rejection of the last upward attempts from the resistance area also predominates on the sell side.
Squeeze in Daily Range and Possible Increase in Volatility
In the technical comment made by ChiefraFba; It is reported that Ethereum price movement is currently stuck between $ 1,800 support and $ 2,100 resistance. The course of such contractions generally results in the continuation of the current trend. If the price falls below the $1,800 level, there may be a signal of acceleration in volatility. Conversely, the structure is expected to continue its downward trend unless the resistance zone is permanently breached.
While this narrow price band indicates that a significant breakout is near, it is stated that movements above $ 2,100 can be considered more positive from a technical perspective.
Whale Short Positions Attract Attention on the On-Chain Side
According to on-chain analysis, a major Ethereum investor opened a highly leveraged short position worth $39 million, and the liquidation price is around $2,187. This transaction, reported by Max Crypto, reflects the downward trend of large investors in the market. Although crowded investor movements have the potential to increase price pressure, it is evaluated that rapid liquidations may be seen in short positions if Ethereum exceeds $ 2,100.
Meanwhile, the price continues to hover near the $1,930 level, and as long as it remains below $1,940, the technical structure is stated to be fragile. The consecutive six-month decline continues the cautious mood among market participants.
Although low-volume upward movements can be seen in Ethereum in the short term, downside risks come to the fore unless the price regains the resistance zone in a sustainable manner. It is especially emphasized that concrete technical signals must be formed in order for volume purchases to come back.
