Ethereum has entered a phase dominated by sellers following a bearish breakdown that highlights increasing weakness across the cryptocurrency market. The second-largest digital asset recently broke down from a critical triangle pattern, signaling a shift toward further downside momentum.
This technical shift paints a deteriorating market structure for Ethereum, compounded by declining moving averages that slope downward. The short-term average remains below the long-term average—a classic indicator of sustained selling pressure—making relief rallies weak and prone to rejection.
Binance liquidation data adds another layer of insight into market dynamics. Since Binance handles a substantial share of global Ethereum derivatives trading, clusters of liquidations there often reflect the broader market mood. Recently, leveraged long positions have been unwound progressively in connection with price drops—a process typically led by institutional or large-scale traders resetting their positions amid market stress.
The market’s failure to recover strongly after successive liquidation waves reinforces the notion of persistent structural weakness. Ethereum must reclaim the broken triangle’s lower boundary soon to prevent intensified selling pressure. Without a recovery, the price faces the prospect of testing a critical support zone near $1,350.
While this breakdown does not yet guarantee an extended bear market, the combination of chart patterns, moving averages, and liquidation data collectively indicate that sellers currently hold the upper hand in Ethereum’s short-term trading environment.