Here’s The Ethereum Descending Triangle Structure That Threatens A Crash Below $2,800

Overview

Ethereum has faced significant challenges in recent months, particularly after reaching a new all-time high in August 2025. The cryptocurrency’s performance has deteriorated sharply, particularly in the last quarter of the year, raising concerns among investors and analysts alike.

Current Situation

Following a peak in August 2025, Ethereum has experienced a decline of more than 29% in the fourth quarter of 2025. This downward trend has persisted, with technical indicators suggesting that the altcoin may continue to struggle. The current market signals indicate the formation of a descending triangle structure on the Ethereum price chart, which is typically associated with further price declines.

Crypto analyst Alpha Trade Scope has highlighted several signs of weakness in Ethereum’s price action. Notably, the price has fallen below a descending trendline, reinforcing the ongoing downtrend that has been in place for approximately three months. This price movement has resulted in a series of lower highs, which reflects increasing selling pressure in the market.

Additionally, there has been a significant shift in Ethereum’s market structure. A Change of Character (CHoCH) has occurred, indicating that the price dynamics are no longer bullish but have instead turned bearish. Resistance has been building at the $3,000 level, with the price consistently trading below this threshold for an extended period.

At present, Ethereum is oscillating within a narrow range defined by the Fair Value Gap (FVG) between $2,930 and $2,960. This range indicates growing resistance, which could impede any recovery efforts. If the price attempts to rally, it may face rejection at this level, further complicating the outlook for Ethereum.

From author

The current technical setup for Ethereum raises several questions about the future trajectory of the asset. With the descending triangle structure and the established resistance levels, it appears that the market sentiment is firmly in favor of bearish outcomes. The persistent decline and the formation of lower highs suggest that traders may need to prepare for further downside movements.

The presence of the Fair Value Gap also adds a layer of complexity to the situation. As the price consolidates within this range, the potential for volatility increases, particularly if the market sentiment shifts or if external factors come into play. Investors should remain vigilant, as the current market structure indicates that Ethereum’s challenges are far from over.

Impact on the crypto market

• The formation of a descending triangle structure could lead to increased bearish sentiment among investors.
• The established resistance at the $3,000 level may deter bullish attempts and reinforce the downtrend.
• Ongoing price declines could trigger further selling pressure, particularly if the first support level at $2,815 is breached.
• The tight trading range within the Fair Value Gap suggests potential volatility, which could impact broader market sentiment.
• A failure to recover from current price levels may lead to a reevaluation of investment strategies for Ethereum holders and traders.