Ethereum price risks another drop as bearish signals intensify

Ethereum (CRYPTO:ETH) is currently undergoing a consolidation correction phase, raising concerns about a potential drop below the $2,500 level.

The cryptocurrency recently retraced back toward the lower boundary of a multi-month wedge pattern, signaling a possible continuation of its bearish trend.

On the daily chart, Ethereum has entered a corrective phase, with its price action indicating a potential pullback toward the $2,800 resistance level.

After finding support near the crucial $2,000 level, ETH attempted a bullish retracement but is now encountering significant selling pressure as it approaches this key resistance zone.

If Ethereum fails to break above the $2,800 resistance, it could confirm the completion of the pullback and suggest that the bearish trend will continue.

The critical levels to watch are the $2,800 resistance and the $2,000 support.

On the 4-hour chart, Ethereum's consolidation is more pronounced, with the price currently caught between the 0.5 ($2,600) and 0.618 ($2,700) Fibonacci levels, both acting as significant resistance.

Additionally, ETH has formed an ascending wedge pattern, a bearish continuation formation that increases the likelihood of a downward break.

If the price fails to push above this resistance zone and drops below the wedge’s lower boundary, the bearish trend is expected to persist, potentially leading to a decline toward the $2,000 support level.

Onchain analysis adds to the bearish outlook, with the Taker Buy/Sell Ratio showing a significant drop after Ethereum faced rejection at the $3,000 level.

This ratio measures the aggressiveness of buyers versus sellers, and its recent decline suggests that sellers are preparing to push Ethereum’s price lower.

Despite a brief recovery in the ratio during a bullish corrective movement, it remained near zero, indicating weak buying pressure.

The combination of technical signals and onchain data suggests that Ethereum may face continued bearish pressure in the coming days.

Without a significant increase in buying demand, the cryptocurrency could risk another drop below the $2,500 level, further reinforcing the bearish trend.