Analysts have turned bearish on Ethereum amid a breakdown in its technical structure, with other market dynamics adding further pressure.
CryptoQuant’s verified author Pelin Ay is one analyst fronting this narrative. In her recent market outlook, she noted that Ethereum ($ETH) has confirmed a bearish breakdown and could potentially trend lower.
Key Points
- Ethereum ($ETH) has confirmed a bearish breakdown and could potentially trend lower.
- The asset slipped below a key multi-month ascending triangle pattern.
- Ether also remains below key moving averages, further pressuring prices.
- Several long liquidation spikes have occurred recently without a following price rebound.
Ethereum Breaks Down from Triangle
The commentary noted that Ethereum’s recent price action paints a weaker picture after the asset slipped below a key ascending triangle pattern. Ether has consolidated within this structure since early February, building momentum for the next directional move.
However, recent pullbacks have seen $ETH breach the lower support, dropping to $2,077 on Monday before a brief recovery. The breakdown has now shifted momentum towards bears, and unless a recovery occurs imminently, it will continue to put pressure on the asset’s price.
MAs Further Mounts Pressure
Ethereum is currently hovering near $2,124, almost unchanged in the past 24 hours. It remains below key moving averages, further pressuring prices.
For context, Ether trades well below the 200D MA at $2,576 and the 137D MA at $2,337. These moving averages have also begun to curve downward, which often reflects fading momentum across the broader market.
At the same time, the short-term average remains below the long-term trend line. That setup suggests buyers are still struggling to regain control, with upward price moves ending up as relief rallies due to insufficient drive.
Unless Ethereum reclaims the broken triangle and key moving averages, the outlook remains heavily bearish. The analyst predicts a drop to the next key support at $1,350, representing a 36% decline from the current price.
Binance Liquidation Data Confirms Bearish Outlook
Another important signal comes from the liquidation activity on Binance, as visible on the chart. The analyst highlighted that this was important because a significant portion of Ether’s derivative volume comes from the leading crypto exchange.
The metric shows that several long liquidation spikes have occurred recently, as Ethereum has failed to sustain an upward move. However, despite those aggressive derivative liquidations, Ether has not responded with a substantial price rally. Instead, prices have trended lower, further flushing out bulls and signaling a downward reset.
The reaction often points to underlying weakness, as selling pressure continues to outweigh recovery attempts. Additionally, it suggests that institutional and large-scale market participants are unwinding their positions.
A parallel analysis from Ali Martinez confirms this. He noted that about 60 whales holding at least 10,000 $ETH have emptied or significantly reduced their balance over the past two months, highlighting institutional repositioning.
Ethereum whales appear to be exiting the network!
Over the past two months, approximately 60 whale addresses holding 10,000 $ETH or more have completely emptied or consolidated their balances.
When distinct entities with multi-million dollar positions exit the network in such a… https://t.co/01CMk9QFPE pic.twitter.com/ViQiXSl30r
— Ali Charts (@alicharts) May 19, 2026
With the Ether whale count dropping and massive exchange inflows recently recorded, the asset is seeing strong selling pressure at the moment.
