When examining Ethereum’s price action together with Binance long and short liquidation data, the market structure appears to be weakening from a technical perspective. In particular, the recent downside breakout from the triangle formation signals that the consolidation phase has shifted in favor of sellers.

Although a breakdown below the lower boundary of the triangle alone is not enough to fully confirm a bearish scenario, the moving averages have also started to slope downward, providing stronger confirmation of downside momentum. The short-term moving average remaining below the long term average indicates that momentum continues to weaken and that relief rallies may continue to face selling pressure. In particular, the downward turn in the blue moving average suggests that the broader trend structure is deteriorating.

Another critical factor on the chart is Binance liquidation data. Since a significant portion of global Ethereum derivatives volume flows through Binance, liquidation clusters formed there carry major importance for overall market direction. Sharp long liquidations followed by price weakness indicate that leveraged long positions are being flushed out and the market is undergoing a downside reset. These periods often reflect aggressive position unwinding by institutional and large-scale market participants.

The market’s inability to produce a strong recovery after recent liquidation spikes also highlights the ongoing weakness in price structure. Technically, the downside breakout remains valid for now, while the probability of a deeper pullback toward the lower support zone shown on the chart remains on the table. If Ethereum fails to reclaim the broken triangle structure, selling pressure could accelerate further and price may target the $1,350 support level.

Written by PelinayPA