By the end of the weekend, Ethereum price had attempted another recovery alongside Bitcoin, but ultimately, the recovery attempt failed again. Speaking to TradingView, crypto analyst DomicChaina explains what’s going on behind this phenomenon and why the Ethereum price is unlikely to see a significant recovery. As it stands, it appears that the leading altcoin is more likely to suffer a rejection to new monthly lows than to actually rebound.
Technical factors push Ethereum price down further
The crypto analyst highlights certain technical developments which indicate that the price of Ethereum is stuck in a bearish phase. One of the main ones concerns both EMA34 and EMA89. According to the analyst, the price action relative to these two EMAs suggests that the downtrend will continue.
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On the one hand, the 39 EMA actually moved below the 84 EMA, and at the same time, both of these moving averages moved lower. This means that despite recovery efforts, the price of Ethereum remains in a medium-term downtrend. Chaina adds that this means the current trend is sideways or a basing process, rather than downward.
For there to be a significant recovery, the Ethereum price would need to break out of this range. However, as long as it continues to maintain this structure, the altcoin is expected to continue falling, heading towards the next major support at $2,500.
Resistance remains strong
In addition to the general downtrend, there is also the issue of growing resistance at $3,090, coinciding with the EMA34. So far, this resistance has been the death of multiple recovery attempts, the latest of which was also stopped in its tracks earlier this week. With the 89 EMA also pointing downward, this means that the price is likely to decline and then recover from there.
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The analysis also highlights declining volume, evidence that capital inflows into the altcoin remain low. With the holidays, this is unlikely to change as investors move away from the market to focus on the celebrations. “This week falls into a holiday period, leading to reduced market liquidity, making price movements slower and lacking breakout momentum,” the post read.
Recovery candles which also remain very short and brief show a stifling of recovery attempts so far, and those that may follow. For now, Ethereum price continues to trend below $3,000, recording a 37% decline from its 2025 all-time highs.
Featured image of Dall.E, chart by TradingView.com
