After the latest Ethereum (ETH) pullback, some analysts have pointed to a bearish setup that suggests the leading altcoin could see another correction toward its potential market bottom.
Ethereum Bear Setup Breakdown Spells TroubleOn Tuesday, Ethereum saw a 5.5% intraday drop from its daily opening, falling below the $1,900 barrier for the first time since late February. Notably, the King of Altcoins broke down from its five-day range between $1,965-$2,035, reaching a two-month low of $1,880.
Now, “the structure is identical. Same breakdown. Same setup,” which suggests that “the final dip” toward the market bottom may be around the corner. “Once this dip completes, we’re headed straight into the next explosive leg up,” the trader stated.
Where Is ETH Headed?This signals that the rallies stemming from this trendline “are clearly weakening,” with the multi-year uptrend “likely faltering.” According to the analysis, ETH must hold the 2026 lows, around $1,750, or reclaim the uptrend to avoid a deeper correction.
To the analyst, “that area could offer a favorable risk-reward entry targeting $2,073 and $2,360, as long as price remains above $1,750 on a daily closing basis.”
Therefore, if ETH sees a weekly close below the $1,850 area, “downside acceleration becomes highly likely,” with the channel structure pointing to two major downside targets, from a technical perspective.
Martinez concluded that the initial retracement would see Ethereum retest the interim structural support around $1,560, while a deeper correction could push the price near the lower boundary of the multi-year range, at $1,070.
