After the weekend, the Ethereum price had attempted another recovery with Bitcoinbut ultimately the data recovery attempt failed again. In an interview with TradingView, cryptocurrency analyst DomicChaina explains what lies behind this phenomenon and why the Ethereum price is unlikely to see a significant rebound. As it stands, the leading altcoin appears to be at greater risk of a rejection towards novel monthly lows than an actual recovery.
Technical factors further reduce Ethereum’s price
Cryptocurrency analyst overview of the most essential events some technical changes that indicate that the Ethereum price is stuck in a bear phase. One of the most essential concerns both EMA34 and EMA89. According to the analyst, price behavior in relation to these two EMAs suggests a continuation of the downward trend.
Firstly, EMA39 actually crossed EMA84 and both indicators simultaneously moving averages are moving down. This means that despite recovery efforts, Ethereum’s price is still in a medium-term downtrend. Chaina adds that this means that the current trend is sideways or a base process, rather than downwards.
For a significant recovery to occur, Ethereum’s price would need to break out of this range. However, as long as it maintains this structure, the altcoin is expected to continue falling towards the next major support at $2,500.
Resistance remains robust
In addition to the overall downward trend, there is also the issue of rising resistance at $3,090, which coincides with EMA34. This resistance has so far put an end to many attempts at economic recovery, with the latest one also thwarted earlier this week. Since EMA89 is also pointing down, it means that the price is likely to drop and then rebound.
The analysis also highlights the decline in volume as evidence that capital inflows into the altcoin remain frail. The situation is not expected to change for the holidays as investors are moving away from the market and focusing on the celebrations. “This week falls during the holiday season, which leads to reduced market liquiditymaking price movements more sluggish and lacking breakout momentum,” the post reads.
The recovery candles also remain very tiny and tiny, showing the suppression of recovery attempts so far and those that may follow. For now, Ethereum’s price continues to trend below $3,000, seeing a 37% decline from its 2025 all-time highs.
Featured image from Dall.E, chart from TradingView.com
