Ethereum's Bearish Trend Intensifies as Price Drops 15%
1min read Ethereum has been under significant selling pressure throughout 2025, with bears maintaining a strong grip on the market. The Money Flow Index for Ethereum has fallen into oversold territory, which could indicate that the asset is undervalued. However, traders and investors are advised to be cautious about bidding due to the overwhelming strength of the bears.
Ask Aime: What factors are contributing to Ethereum's current bearish trend?
A wallet potentially linked to World Liberty Financial sold 5,471 ETH worth $8.01 million at $1,465, according to data from Arkham Intelligence. This sale, combined with the market price falling below the realized price, has painted a bearish picture for the leading altcoin. Additionally, the ETH/BTC pair has reached its lowest point since December 2019, further emphasizing the bearish sentiment.
Based on the rally in November, the Fibonacci retracement and southward extension levels were plotted. The 123.6% extension at $1,944, just below the psychological $2,000 level, served as support in March. However, the sustained selling pressure over the past two weeks has flipped this level to resistance. The horizontal level at $1,550, which had been support in September and October 2023, also failed to halt the bears’ advance.
The Money Flow Index was at 11, indicating extreme selling pressure recently. A bullish divergence between the indicator and the price has not yet formed, making it unlikely for the price to recover above $1,550. Instead, a retest of $1,550 could offer an opportunity for short sellers.
The 3-month Ethereum liquidation heatmap revealed $1,510 and $1,640 as short-term bullish targets. Beyond these, notable magnetic zones are at $1,860 and $2,000. On the downside, $1,380 stands out as a significant liquidity pocket due to its size and proximity to the current price, making it the most probable short-term target. Ethereum buyers are advised to remain patient and avoid bidding at $1,380, even though a price bounce is likely after reaching this level.
Overall, the long-term trend remains strongly bearish. While a minor price recovery toward $1,640 is possible, bears are expected to maintain dominance. The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
