Ethereum is testing the $2,140 level after an intraweek low near $2,070.
A technical breakdown raises the risk of a sharp decline to $1,350, CryptoQuant notes.
Bullish catalysts could include regulatory clarity and continued institutional demand.
Ethereum (ETH) briefly traded back above the $2,100 level on Wednesday after gaining about 1% over the past 24 hours as Bitcoin reclaimed the $77,200 mark.
While the rebound offered some relief for bulls, the altcoin remains under pressure following a sharp weekly decline.
Technical indicators continue pointing to elevated downside risk, with some analysts warning that ETH could face a deeper correction toward the $1,350 level.
Ethereum price today
Market data during the US session on Wednesday showed Ethereum testing the $2,140 zone after rebounding from intraweek lows near $2,070.
The rebound followed several sessions of heavy selling, although ETH remains well below recent swing highs.
Ethereum is currently trading nearly 7% lower for the week and roughly 28% lower year to date.
The Relative Strength Index (RSI) is hovering near oversold territory, which may suggest conditions for a short-term relief bounce.
However, ETH continues trading below all major moving averages on the daily chart, signaling that bearish momentum remains dominant.
Could ETH fall to $1,350 after a bearish breakdown?
One of the primary concerns for bulls is Ethereum’s breakdown below the support trendline of a triangle pattern.
The latest sell-off confirmed the structural breakdown on the daily chart, raising concerns that price action could mirror a similar technical failure earlier this year.
At the time, Ethereum’s price declined sharply from the $2,800–$3,000 range, falling roughly 35% over several days in February. If similar market conditions develop again, analysts warn that selling pressure could intensify further.
Analysts at CryptoQuant highlighted the downside risk in a recent market note.
“If Ethereum fails to reclaim the broken triangle structure, selling pressure could accelerate further, and price may target the $1,350 support level,” CryptoQuant author and analyst Pelin Ay wrote.
Macro conditions and weakening market flows have also added pressure to Ethereum’s price outlook.
Ethereum’s recent weakness has tracked Bitcoin’s broader lack of momentum, with BTC slipping toward the $76,000 area in recent sessions.
Meanwhile, spot Ethereum ETFs have recorded seven consecutive days of net outflows.
Persistent outflows have increased concerns that the recent technical breakdown could develop into a more prolonged downtrend.
Contrasting views and potential support levels
Not all market participants remain bearish on Ethereum’s longer-term outlook.
Bitmine’s Tom Lee said the recent pullback could represent a “buy low” opportunity, particularly as Bitmine’s treasury holdings now exceed 4.37% of Ethereum’s circulating supply.
Some bullish investors continue pointing to longer-term catalysts, including stablecoin growth on Ethereum, increasing staking adoption, and expanding interest in tokenized real-world assets (RWA).
Market participants are also monitoring regulatory developments that could influence broader institutional adoption trends over time.
In the near term, traders will closely watch whether buyers can push ETH back above the $2,200–$2,400 resistance zone.
Failure to reclaim that range could expose the token to another decline below $2,000, with some analysts identifying $1,350 as a possible downside target.
