Ethereum price eyes $2,900 as downtrend expands, risk of capitulation grows

Ethereum price continues to show weakness as bearish market structure expands, price now eyes $2,900 as a support level that could determine a capitulation move.

Ethereum (ETH) price has been under consistent selling pressure since losing the $3,900 level, marking the start of a sustained bearish trend. The cryptocurrency is now approaching the high-timeframe (HTF) support at $2,900, a zone that has yet to be tested during this downtrend.

The lack of bullish strength and absence of recovery momentum raise concerns that ETH may face a deeper correction before any meaningful reversal can occur.

Ethereum price key technical points

• Major Support: $2,900 remains the untested high-timeframe support.
• Key Resistance: $3,400 serves as the upper boundary of the current trading range.
• Market Structure: Bearish, with consecutive lower highs and weak bullish follow-through.

ETHUSDT (6H) Chart, Source: TradingView

Ethereum’s price action reflects a clear continuation of its bearish structure, which began after the rejection at $3,900. Since that failure, ETH has steadily formed lower highs, maintaining downward pressure and suggesting that the $2,900 region will soon come into play.

This level holds significance as a potential liquidity zone where a bounce or accumulation phase could begin, as well as a possible support level that could trigger a capitulation-style drop.

The $3,400 region has acted as a formidable resistance, rejecting multiple recovery attempts over recent weeks. Until this resistance is reclaimed on a closing basis, bearish market conditions are expected to persist.

The trading range between $3,400 resistance and $2,900 support now defines the broader environment for Ethereum, with limited signs of directional conviction in the short term.

Volume profiles also suggest waning buyer participation. Despite minor relief bounces, there has been no substantial bullish influx, indicating weak demand. This lack of volume confirmation keeps the bearish bias intact and supports the idea that ETH may need to sweep liquidity below before any sustainable reversal can occur.

What to expect in the coming price action

If Ethereum decisively breaks below $2,900, a capitulation move could accelerate, pushing the price toward deeper support zones and potentially resetting the market structure for a long-term base. Conversely, if $2,900 holds and volume strengthens, a short-term relief rally back toward $3,400 may develop.

For now, the market remains technically bearish, and $2,900 stands as the make-or-break level that could dictate Ethereum’s next significant directional move.