Ethereum Tests $1,550 Support as Analysts Warn of Further Downside

Ethereum has fallen to around $1,550, a key support zone that could determine whether the token extends its decline.

NewsBTC reported on June 7 that crypto analyst More Crypto Online sees Ethereum at a critical juncture after it broke below a bear flag pattern and failed to rebound at a major trend-line resistance level. The move suggests the B-wave rebound formed in April may already have peaked.

More Crypto Online outlined a C-wave decline as the most likely scenario. He said $1,550 and $1,400 could act as major support levels. While Ethereum is reacting at the first support area, bear markets often produce unexpected rebounds.

Even if Ethereum stages a short-term bounce, that would be premature to treat as a trend reversal. As long as the price remains below trend-line resistance, any gains would likely amount to a technical rebound. In his view, no strong bullish signal has yet emerged to invalidate the bearish case.

Another crypto analyst, MarketMaestro, described the current range as a major test for Ethereum's long-term trend. He said Ethereum is still holding above a long-term support trend line and a key Fibonacci support level on the monthly chart. That leaves the token at an important turning point between a simple correction and a structural decline.

He added that the technical outlook could worsen sharply if the monthly close falls below the current support line. If support holds, the recent decline could still be interpreted as a normal correction within a longer-term uptrend. A strong rebound from current levels, coupled with a long lower wick, could also signal that investors are stepping in to buy the dip.

Still, MarketMaestro said a decisive break below support could send Ethereum into a prolonged basing phase. That would mean a sustainable uptrend may take considerable time to develop.