Ethereum has been in a downtrend for over four weeks, forming what appears to be a bearish rounded top that suggests it may be at risk of further losses in the coming weeks. According to data from crypto. news, Ethereum (ETH) has been mostly in a free fall since Oct. 28, dropping 29% which extends to 41% from its year-to-date. Trading at $2,926 at press time, the leading altcoin in the crypto space has managed to see a slight rebound and is up 2% over the past day. Ethereum price declined amid a broader market correction in which Bitcoin (BTC) fell significantly below the $100k support level amid macroeconomic concerns, including a hawkish statement from U. S. Federal Reserve Chair Jerome Powell regarding further rate cuts. This spooked traders and led to a flight from risky assets. The Fear and Greed Index, which traders use to gauge market sentiment, reached an “Extreme Fear” level by mid-November. This widespread fear triggered a wave of liquidations, which created additional selling pressure across major cryptocurrencies, including Ethereum. The second-largest crypto asset by market cap also fell as demand for its spot ETFs has waned. Data from SoSoValue shows that the nine U. S. spot Ether ETFs have seen over $2. 1 billion in net outflows since mid-October. While some entities like BitMine have stepped up their Ethereum accumulation with a sizable purchase, the broader investor sentiment still looks weak. Momentum remains fragile, and Ethereum could very well slip further into lower support zones if selling pressure persists. Ethereum price analysis On the daily chart, Ethereum’s price downtrend that began in early October has shaped up into a multi-month rounded top pattern, which typically tends to be a precursor for extended bearish momentum. For instance, Solana (SOL) experienced a plunge of nearly 49. 9%, falling from its September high of $247. 56 to a low of $124, as it formed such a pattern on its charts. At press time, the altcoin’s price was testing a breakout from the rounded top pattern after it turned the $2, 750 level into support, a level that had previously acted as key resistance multiple times since 2024. However, a point of concern for investors is that even if Ethereum’s price manages to break out of the pattern, the resulting offshoot could lead to the formation of a handle. This could eventually lead to an inverse cup and handle setup, which is often regarded as a more severe bearish continuation structure that could spook short-term traders. For now, traders should keep an eye on $2, 230, which forms the next key support level to watch. The level has acted as a strong demand zone in the past, providing a solid base during multiple consolidation phases and rebounds earlier in the cycle. At press time, this support level is approximately 24% below the current price.
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