Ethereum drops from 2420 to 2218, triangle breakdown triggers secondary probe, bearish dominance confirmed!

Author: Trading Master
Ethereum sharply declines from 2420 to 2218, not by chance, but triggered by a triangle breakdown causing bearish resonance. Under the combined negative factors of capital outflows, cycle downturn, and candlestick signals, a second test of the lows is inevitable!

From the chart pattern perspective, the key support level is the 2420 lower boundary of the symmetrical triangle previously formed by Ethereum. After failing to rebound and test this support, it directly broke down, opening a target around 2250 for further decline. The 2218 level is the precise landing point after the breakdown, perfectly fulfilling the measured decline of the triangle pattern, establishing a complete bearish trend.

On the capital side, the bearish push is even more evident. On-chain data shows Ethereum’s net daily outflow exceeding $154 million. ETF redemptions and institutional withdrawals continue, coupled with a surge in stablecoin trading volume, indicating frantic capital outflow from ETH as a safe haven. The market lacks buy-in support, making sell-offs effortless, with long positions forced to liquidate, creating a vicious downward cycle.

Cycle-based bearish signals are at full throttle: daily Bollinger Bands are opening downward, MACD shows increasing bearish momentum, the 50/200-day moving averages form strong resistance, and rebounds are merely traps for late longs; the weekly chart has broken below the wedge support. After the previous breakdown of the 2659 support, the next target directly points to the 2147-2218 zone, confirming an irreversible long-term bearish trend.

Key candlestick reversal points have been set: the breakdown of 2420 is confirmed by a bearish engulfing candle that completely engulfs the previous three small rebound candles, forming a headless sword pattern, turning support into resistance. Every subsequent rebound touching this level is precisely targeted by bears, leaving no room for bulls to fight back. The second low test is fully controlled by the bears.

Although there is brief support around 2218, the bearish trend after the triangle breakdown remains unchanged. With ongoing capital outflows and long-term bearish pressure, do not blindly buy the dip! Follow me for precise short entry points, grasp the upcoming decline, and turn your position around now!

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