Ethereum price breaks down: is a recovery in sight?

The Ethereum price is currently at $1.700. a small increase of 0.7% in the past 24 hours. Yet the bigger picture is far from rosy. Crypto analyst DaanCrypto says he has no reason to get excited yet, but does see an interesting situation developing at the bottom of the price range.

Ethereum is available at OKX and Bybit.

Breakdown in a broader downtrend

According to DaanCrypto, the recent move lower is merely the next step in a larger downtrend. He indicates that he will only become interested again if Ethereum manages to reclaim the so-called “range low”, a support level on the chart around $1.748, As long as that does not happen, he sees little reason to be optimistic.

At the same time, it is notable that the downward move after the breakdown has not been particularly forceful. The price briefly dipped below the range low, but a strong further decline did not materialise. For DaanCrypto, this weak follow-through is actually a signal that there may be more to it. On the chart, it can be seen that the Ethereum price fell sharply in June from above $2.000 to around $1.600. after which a cautious recovery began.

Possible deviation as an opportunity for buyers

DaanCrypto is anticipating a so-called deviation: a situation where the price briefly drops below an important support level before quickly bouncing back. This pattern is often seen by traders as a false breakout that removes liquidity from short positions, after which the price rises again. The analyst marks on his chart the range low around $1.750 and the range high at approximately $2.400 as the two key zones to watch.

Sentiment around Ethereum has been under pressure for some time. For instance, there was recently $35 million outflow from Ethereum ETFs, which increases selling pressure on the market. Whether the potential deviation actually materialises and Ethereum manages to reclaim the range low remains to be seen.