Potential Short-Term Bounce for Ethereum Amid Persistent Bearish Pressure

• Ethereum’s price continues to grapple with downward pressures in 2025, with current market dynamics suggesting a precarious situation for investors.

• Recent trading volume has dwindled, prompting traders to reassess their positions as the market encounters significant resistance levels.

• “Ethereum is faced with the relentless grip of bearish trends, as market confidence wanes amid selling pressure,” notes a report from COINOTAG.

Ethereum struggles with bearish trends in 2025, facing potential short-term recovery as sell-offs dominate the market landscape.

Ethereum’s Short-Term Price Outlook amidst Bearish Pressure

As Ethereum [ETH] continues to face challenges, the recent examination of market indicators reveals a complex scenario for this leading altcoin. Investor sentiment remains largely negative due to persistent selling pressure. Observations show a Money Flow Index (MFI) that has dipped into oversold territory, indicating potential undervaluation. However, this condition must be approached cautiously given the strong bearish momentum presently dominating the market.

Critical Support and Resistance Levels at Play

The ongoing price action around $1,400 raises attention for traders. Ethereum’s support has faltered, particularly the once-resilient level at $1,550 which has now transitioned into a point of resistance. Recent data indicates that the equilibrium is shifting, with the selective probing of support levels being essential for guidance on imminent trading strategies. Investors are advised to monitor key levels of $1,510 and $1,640 as potential bullish targets, which could trigger a retracement if tested successfully.

Market Sentiment and Liquidation Trends

According to insights from liquidity analysis, significant liquidation events have occurred in recent weeks with Ethereum seeing a noteworthy rise in short positions. This is reflected in the 3-month liquidation heatmap, where areas of higher liquidity at $1,380 stand out as short-term focal points. While bulls may find temporary relief at these levels, the overall trend remains heavily skewed towards bearish sentiment.

Conclusion

The outlook for Ethereum remains cautiously bearish with a potential for a short-term bounce near $1,380. Traders must navigate these turbulent waters carefully, with the understanding that while minor recoveries may occur, the overarching trend leans towards continued bearish dominance. Patience and strategic caution are warranted as market conditions evolve.