After a weekend attempt to recover alongside Bitcoin, Ethereum’s price once again failed to sustain its upward momentum. Crypto analyst DomicChaina, writing on TradingView, explains the underlying factors and why a significant rebound for Ethereum appears unlikely. Currently, the leading altcoin seems more poised to face rejection and fall toward new monthly lows than to stage a recovery.
Technical indicators are driving Ethereum’s price lower. The analyst points to key developments, particularly involving the EMA34 and EMA89 moving averages. The EMA34 has crossed below the EMA89, and both averages are trending downward. This signals that despite brief recovery attempts, Ethereum remains in a medium-term downtrend. Chaina notes this indicates a sideways or basing pattern rather than an immediate plunge. For any meaningful recovery to occur, Ethereum would need to break out of this range. As long as the current structure holds, the expectation is for further decline toward the next major support level at $2,500.
Resistance is also proving strong. A key barrier at $3,090, which aligns with the EMA34, has repeatedly halted recovery attempts, including the latest one earlier this week. With the EMA89 also pointing down, the price is likely to drop before any potential rebound.
The analysis further points to declining trading volume as evidence of weak capital inflows into Ethereum. With the holiday season underway, this trend is expected to continue as investors shift their focus away from the markets. “This week falls into a holiday period, leading to reduced market liquidity, which makes price movements more sluggish and lacking breakout momentum,” the post stated. The brief and short-lived nature of recent recovery candles also shows how stifled these attempts have been.
For now, Ethereum continues to trade below $3,000, marking a 37% decline from its 2025 all-time high.
Frequently Asked Questions
FAQs Why Ethereums Price Could Keep Falling
BeginnerLevel Questions
1 What are the main reasons Ethereums price might drop
Ethereums price can fall due to broader market downturns increased selling pressure negative regulatory news or a decline in overall investor confidence in riskier assets like cryptocurrencies
2 Is Ethereums price drop just part of normal market cycles
Yes cryptocurrencies are known for high volatility Sharp rallies are often followed by significant corrections While past cycles dont guarantee the future large price swings are a common characteristic of the crypto market
3 How does the overall stock market affect Ethereums price
Ethereum often moves in correlation with major stock indices especially tech stocks When investors are fearful about the economy they tend to sell riskier assets which can include both stocks and cryptocurrencies like Ethereum causing prices to fall together
4 Could new regulations cause Ethereum to lose value
Absolutely Unclear or restrictive regulations from major governments can create uncertainty potentially limiting adoption scaring institutional investors and leading to selloffs
5 What is selling pressure and how does it push the price down
Selling pressure happens when more people want to sell ETH than buy it To find buyers sellers must lower their asking prices If this imbalance persists it can create a sustained downward trend
Intermediate Advanced Questions
6 How do Ethereums own network issues contribute to price declines
High network transaction fees during congestion can deter users and developers If competing blockchains offer significantly lower costs and faster speeds it can lead to a migration of activity and capital away from Ethereum negatively impacting its value
7 What role do large investors play in a price drop
Whales holding large amounts of ETH can trigger sharp declines if they decide to sell a significant portion of their holdings on the open market Their moves can create panic and lead to cascading selloffs from smaller investors
8 Can problems in decentralized finance or with major apps on Ethereum affect its price
Yes Ethereums value is tightly linked to the ecosystem built on it A major hack exploit or collapse of a prominent DeFi protocol or application can destroy confidence