Ethereum has been struggling to gain upward momentum, remaining trapped below crucial resistance levels for over a year. Despite multiple breakout attempts, the second-largest cryptocurrency by market capitalization has failed to sustain a rally, raising concerns among analysts and investors alike.
Ethereum’s Struggle Against Long-Term Resistance
Recent price action has further highlighted Ethereum’s weakness, with technical analyst Tony “The Bull” Severino shedding light on the persistent rejection from key resistance levels. In a social media post, Severino noted that Ethereum has failed to tag the quarterly Parabolic SAR for more than a year, reinforcing a bearish trend. The indicator, widely used to assess trend direction, suggests that Ethereum is locked in a prolonged downward movement.
“This feels like it sends a message — resistance won’t be broken,” Severino commented, emphasizing the difficulty Ethereum has faced in breaching its long-term resistance zones.
Adding to these concerns, Severino also pointed out that Ethereum has repeatedly been rejected by the quarterly SuperTrend dynamic resistance. This rejection signals that buyers have been unable to regain control, further weakening the cryptocurrency’s bullish outlook.
The $2,100 Support Level: A Critical Threshold for Ethereum
Ethereum’s inability to maintain key price levels has been a recurring theme over the past six months. After failing to hold above $2,800, the cryptocurrency has steadily declined, breaking multiple support zones in the process. Currently trading below $2,200, Ethereum is dangerously close to losing the crucial $2,100 level.
A drop below this threshold could spell disaster. One of the most significant technical warning signs comes from the quarterly Bollinger Bands indicator, which has tracked Ethereum’s price movement since February 2022. The indicator places Ethereum’s upper band at $4,190 and its lower band at $2,098. If Ethereum closes the month below $2,100, it would break below this lower Bollinger Band, potentially removing a long-standing support level and triggering a deeper decline.
Ethereum’s Sentiment at a Yearly Low
At the time of writing, Ethereum is trading at $2,178, posting a modest 2.2% gain over the past 24 hours after briefly dipping to $2,120. However, market sentiment remains at its lowest level this year. The coming weeks will be crucial in determining whether Ethereum can reclaim lost ground or succumb to further downward pressure.
