Ethereum’s Bear Market Blues: Descending Channels, Demand Zones, and the Next Big Move

Ethereum traders are having one of those weeks where the only thing moving is their patience. The market is locked in a classic descending channel, and the price has been methodically ground down from the mid-$2,000s to the $1,800 demand zone. If you’re looking for a breakout, you’re going to need more than hope and a handful of Discord memes.

The facts are as stark as the chart. According to CryptoPotato, Ethereum is stuck in a cyclical downswing, with the latest capitulation leg dragging the price from the mid-$2,000s to the $1,800 region. The technicals are ugly: lower highs, lower lows, and a demand zone that looks more like a last line of defense than a springboard for a rally. Volume has dried up, and the only thing more persistent than the sellers is the chorus of analysts calling for a reversal that never seems to come.

But here’s the kicker: even as Ethereum languishes, the broader crypto market is showing signs of stabilization. Bitcoin is holding near $68,000, liquidations are cooling off, and the ETF flows are still positive. Hyperliquid, a new exchange on the block, just processed nearly $2.6 trillion in notional trading volume, almost double Coinbase’s 2025 tally. The altcoin market is a mixed bag, with Solana under scrutiny after unverified $1.5 billion loss claims and XRP making headlines for its stablecoin expansion in the UAE. But Ethereum remains the bellwether, and its price action is a window into the soul of this market.

The context is worth unpacking. Ethereum’s descent is not happening in a vacuum. The entire sector is grappling with the aftermath of the last speculative blowoff, and the narrative has shifted from “up only” to “survive until the next cycle.” Chainlink’s Sergey Nazarov is out telling Blockonomi that this bear market is different because there have been no major collapses, just a slow, grinding bleed. The Ethereum Foundation is backing SEAL to combat crypto scams, a sign that the industry is trying to clean up its act. But none of this is moving the needle for price action.

What matters now is the demand zone. The $1,800 region has become the line in the sand for bulls and bears alike. If Ethereum can hold this level, there’s a case for a relief rally back toward the mid-$2,000s. If not, the next stop could be a lot lower, and the pain trade will be alive and well. The market is waiting for a catalyst, be it a regulatory breakthrough, a killer app, or simply a wave of short covering, to snap out of its funk.

The analysis is simple but brutal. Ethereum is in a textbook bear market structure. The descending channel is intact, and every rally attempt has been sold into. The RSI is oversold, but that’s been true for weeks. The volume profile shows a lack of conviction on both sides, which means the next move could be sharp and decisive. The risk is that the demand zone fails, triggering a cascade of liquidations and a quick trip to the next major support. The opportunity is that the market is so washed out that even a modest catalyst could spark a face-ripping rally.

Strykr Watch

The Strykr Watch are clear. $1,800 is the must-hold support. Lose that, and the next target is $1,600. On the upside, watch for a break above $2,050 to signal a potential reversal. The 200-day moving average is sitting near $2,100, and reclaiming that level would be a game changer for sentiment. The descending channel resistance is tightening, and a breakout could catch shorts off guard. The Strykr Score is sitting at 41/100, reflecting the lack of conviction and the risk of further downside.

The risks are obvious. If Ethereum loses the $1,800 demand zone, the selloff could accelerate in a hurry. The broader market is not immune, and a breakdown in ETH could spill over into other altcoins. Regulatory risk is always lurking, and the threat of another DeFi exploit or exchange blowup is never far away. But the biggest risk is apathy. If the market stays stuck in this range, traders will start to lose interest, and liquidity could dry up even further.

The opportunities are there for those willing to take the other side of the consensus. If Ethereum holds $1,800 and manages to reclaim $2,050, the rally could be swift and violent. The risk-reward is skewed for nimble traders, but the setup is not for the faint of heart. If you’re looking to fade the consensus, now is the time to start building a position, but keep your stops tight and your expectations realistic.

Strykr Take

Ethereum is in the doldrums, but the setup is getting interesting. The market is washed out, sentiment is shot, and the risk-reward is finally starting to look attractive. If you’re a trader, this is the kind of environment where fortunes are made, if you have the stomach for it. Just don’t expect a smooth ride. The next move will be fast, and you’ll want to be on the right side of it.