Ethereum Bearish Confirmation

The chart shows a weakening technical structure in the market when examining the Ethereum price along with long and short liquidation data on Binance. The downward break of the recently formed triangle pattern indicates that the market's equilibrium has shifted in favor of sellers.

While a drop below the lower band of the triangle isn't a sufficient signal on its own, the downward slope of the moving averages strongly confirms the bearish scenario. The fact that the short-term average remains below the long-term average indicates continued market momentum loss and that rebound rallies may face selling pressure. The downward turn of the blue moving average, in particular, reveals a structural weakening of the trend.

Another notable element in the chart is the Binance liquidation data. Since a large portion of the global volume in the Ethereum derivatives market passes through Binance, the liquidation clusters occurring there are critically important for market direction. The loss of support in the price following sharp long liquidations suggests that leveraged long positions are being liquidated and the market is being cleared downwards. In these types of processes, Binance data usually reflects periods of aggressive position closing by institutional and large players.

The inability of the price to produce a strong recovery after recent liquidation spikes also indicates that the market remains weak. The current technical structure suggests that a downward breakout remains valid, and a new retracement towards the lower support zone indicated on the chart is possible. In particular, if the triangle breakout cannot be reversed upwards, selling pressure is expected to accelerate, targeting the $1350 support level. $ETH