Ethereum price eyes $2,900 as downtrend expands

Ethereums 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.