Ethereum (ETH) price approaches key technical resistance, could fall to $1,700

According to recent technical analysis, this resistance zone has triggered past reversals, and analysts caution that another failure to break above could lead to a downward correction.

Ethereum price is approaching a key technical level that has historically acted as a barrier to upward price movement. This resistance zone, when triggered, has led to past reversals, and failure to break above could lead to another downward correction.

The altcoin is trading within a descending channel, a pattern typically associated with bearish trends. While some analysts remain optimistic about a potential rebound, others warn that the next move could push ETH price lower, targeting a key support of $1,700.

Analysts Warn Of Ethereum Price Potential Fall To $1,700

As shared by crypto analyst MadWhale, Ethereum is nearing resistance at $2,200. This level coincides with the upper boundary of a Descending Channel.

Technical analysts classify this pattern as bearish. Price movements within the channel have shown lower highs and lower lows, indicating downward pressure.

At this resistance, there have been instances of price bouncing lower. A failure to break above could lead to a 13% decline, setting a lower target of $1,700. This level has previously acted as support for the altcoin.

Moreover, another recent analysis shows that ETH/BTC is currently testing a critical support zone last seen in late 2020. This could herald a trend reversal after years of decline.

This technical setup, combined with record-high futures open interest of 10.23M ETH, signals a rising potential for a rebound.

Technical Indicators Support A Bearish Outlook

The Ethereum price chart also shows weakening bullish momentum. A rounded top pattern is forming near the resistance. This technical formation suggests that buying pressure is declining.

Volume analysis reveals that trading activity is inconsistent, with low participation during recent gains and higher volume during declines.

Lower highs on the daily chart further support a potential downward continuation. These are typical in bearish trends. Traders are advised to monitor for signs of increased selling pressure.

Confirmation of a rejection, such as a bearish candlestick pattern or rising sell volume, could strengthen the case for a decline toward $1,700. According to the Moving Average Convergence Divergence (MACD), ETH is currently showing signs of waning bearish momentum as the MACD line is approaching a bullish crossover with the signal line.

If this crossover occurs and is supported by increasing histogram bars, it could indicate a potential price rebound for the top altcoin.

Analyst Forecasts Bullish Targets For Ethereum

While bearish indicators persist, some market observers maintain a positive view. Analyst Patron has outlined three possible bullish price targets.

According to his analysis, if the top altcoin holds support near $1,980, a short-term rally could occur. His initial target is $2,296, reflecting a potential increase of over 15%.

Further upside targets include $2,913 and $4,000. These projections assume that current support holds and momentum shifts in favor of buyers.

The analyst’s outlook is based on Ethereum price recovering from recent lows and reclaiming previous highs. This scenario would challenge the bearish narrative if confirmed by increased volume.