Following Ethereum (ETH)’s recent pullback, some analysts have pointed to a bearish setup indicating that the leading altcoin may see another correction towards a potential market bottom.
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A breakdown in your Ethereum Bear setup creates a problem
On Tuesday, Ethereum saw a 5.5% intraday decline from its daily open, falling below the $1,900 mark for the first time since late February. It is worth noting that the altcoin king fell from the five-day range between $1,965 and $2,035, reaching a two-month low of $1,880.
Amid today’s broader decline, which also… sender Bitcoin (BTC) towards the $67,000 support level Market watcher Trader Tardigrade confirmed that an eventual correction for ETH could be just around the corner as the major bearish pattern is “perfectly repeated.”
Merchant He pointed out Breakdown of the bear flag formation on the three-day chart of the altcoin. The setup has been taking shape since the market crash in February, with the cryptocurrency breaking out of the bottom of the pattern around mid-May, when the price lost the $2,200 area.
According to the chart above, this is the second time this pattern has formed since the highs in Q3 2025, with the first setup developing between late 2025 and early 2026, leading to a 40% crash in Q1 2026.
More importantly, Ethereum appears to be the same repetition The same correction path from the Q4 2024 high to the Q1 2025 high. After peaking in late 2024, the cryptocurrency printed two consecutive bear flags, followed by a new leg lower, before hitting its local bottom and eventually starting a new bullish high.
Now, “the structure is identical. Same breakdown. Same setup,” suggesting that the “ultimate slide” toward the market bottom may be just around the corner. “Once this decline is complete, we head straight into the next bullish phase,” the trader stated.
Where is ETH headed?
Analyst Reckitt Capital male Ethereum closed the month below its multi-year uptrend for the second time in five months. The last time this happened, the altcoin saw “limited movement to the upside” but was quickly rejected from the crucial $2,400 horizontal level.
This suggests that the rallies generated by this trend line are “visibly weakening,” with the “multi-year uptrend likely faltering.” According to the analysis, ETH must maintain its 2026 lows, around $1,750, or regain the upside to avoid a deeper correction.
And so is Ali Martinez His name This level represents crucial support amid the recent price movement. As he explained, Ethereum is approaching the bottom of its four-month horizontal channel, which is located near the $1,825 level.
For the analyst, “This area could provide a suitable risk-reward entry targeting $2,073 and $2,360, as long as the price remains above $1,750 on a daily closing basis.”
However, he had already to caution That since the price was rejected from the middle zone of the multi-year channel and the 200-week simple moving average (SMA), the altcoin risks a deeper correction.
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Therefore, if ETH sees a weekly close below the $1,850 area, “an acceleration of the downtrend becomes highly likely,” as the channel structure indicates two major downside targets, from a technical perspective.
An initial correction would see Ethereum retest temporary structural support around the $1,560 area, while a deeper correction could push the price near the lower end of the multi-year range at $1,070, Martinez concluded.
Featured image from Unsplash.com, chart from TradingView.com
