Ethereum plummets below $1,550 as new support levels emerge - analysts warn of deeper correction

Ethereum has crashed below the critical $1,550 support level, signaling a potential 10% correction that could drag the second-largest cryptocurrency to $1,400 or even $1,070. This sharp decline extends the bearish pressure, with the first major target already breached as analysts warn the sell-off may only be in its early stages, targeting deeper support levels that could reshape the market landscape.

Bearish technical pressures intensify

According to analysts at More Crypto Online, Ethereum remains under considerable pressure after breaking below a bearish flag formation and repeatedly failing to surpass its descending trendline. The latest rejection from the yellow descending trendline—acting as resistance since the April peak—suggests the correction may not be over yet.

Glossary: The bear flag is a technical pattern where a brief, sideways or upward consolidation follows a sharp drop, typically leading to another decline. Elliott Wave analysis is a technical approach interpreting price action through recurring wave patterns.

Using Elliott Wave counts, the analysis indicates Ethereum is in the midst of a larger C-wave decline. Within this scenario, the $1,550 to $1,400 range stands out as the next significant support area. Special attention is being paid to Fibonacci levels near $1,554 and $1,599, given the possibility of a short-term reaction in the market.

According to the analysis by More Crypto Online, Ethereum will likely maintain a downward bias as long as it stays below the descending trendline; only a decisive break above could invalidate the current bearish setup.

Analysts also note that brief rebound rallies may occur after sharp declines. However, even if prices recover temporarily, any move will be seen as a trend reversal only if Ethereum manages to establish itself above the falling trendline.

First major target reached as deeper supports await

In a weekly outlook shared by Ali Charts, Ethereum is reported to have declined to the $1,560 range, fulfilling the initial downside target. Dropping below the $2,282 level has shifted the long-term focus to more substantial support areas further down.

The weekly chart shows that $2,282 had previously served as a major pivot zone. Losing this support has handed control back to sellers, driving prices down to around $1,549 and thus meeting Ali Charts’ earlier $1,560 projection.

The technical chart identifies $1,069 as the next key support, an area that marked a crucial low in a previous market cycle. If the downward trend continues, market attention could shift toward this major level.

Ali Charts’ review indicates that with the loss of $2,282, focus has shifted to deeper support zones; as long as the price remains below this mark, $1,069 will stay relevant.

Broader technical patterns reveal that Ethereum is moving further away from its resistance zones at $3,335 and $4,868. A succession of lower highs and lower lows on the weekly chart signals that bearish pressure persists for now.