Ethereum Slips Below $3K as Falling Wedge Breakdown Signals Bearish Shift

Ethereum (ETH) has entered a short-term downtrend, threatening to erase its recent bullish momentum. After a strong breakout earlier this month that pushed ETH above the 200-day EMA for the first time in months, the rally has quickly faltered. The recent price action has broken below a falling wedge pattern—typically a bullish continuation signal—indicating a potential reversal trap rather than consolidation. This breakdown suggests weakening market strength rather than a healthy pullback.

ETH is now trading below the critical 200 EMA level, currently at $2,438, which has flipped from support to resistance. This technical breakdown adds bearish pressure to an already fragile setup. Without a swift recovery, Ethereum risks retesting the $2,200–$2,170 support range. A failure at this level could open the door for a further decline toward $2,000.

Trading volume trends offer little optimism. Despite multiple red candles over recent sessions, there has been no significant increase in bullish volume to counter the selloff. This lack of buying interest reflects declining investor confidence.

While Ethereum's macrotrend remains intact for now, the failure to hold key technical levels so soon after a breakout reveals the fragility of the recent rally. Unless bulls reclaim momentum quickly, ETH’s local decline could drag down broader crypto sentiment. The rapid rejection above $3,000 underscores how unprepared buyers were for resistance, raising concerns about Ethereum’s near-term outlook.