Ethereum Outlook Weakens as Key Support Faces Pressure

• ETH remains above critical support, though recent wave patterns suggest caution remains necessary.

• Long liquidations have moderated, reducing leverage pressure after several volatile months.

• A failure to hold $1,668 would break the current bull market wave formation.

Ethereum Outlook remains cautious as traders monitor support after recent volatility. Market attention stays focused on technical signals amid changing liquidation conditions.

Wave Structure Keeps Bullish Scenario Alive

MCO Global recently shared a post discussing Ethereum’s short-term structure. The update focused on a 30-minute Elliott Wave chart. The market remains near a technical crossroads.

Source: X

According to the post, ETH completed a five-wave advance recently. However, the structure appeared overlapping and difficult to classify. Therefore, diagonal interpretations remain under consideration.

The blue wave one-two scenario still remains technically valid. Support between $1,691 and $1,722 remains important. Buyers continue defending this region carefully.

The decline from Monday’s high resembles five smaller waves. That pattern often reflects impulsive market behavior. Consequently, wave two may still be unfolding.

Fibonacci Support Defines Key Trading Levels

MCO Global’s chart placed emphasis on Fibonacci retracement zones. Ethereum entered the 50% to 78.6% region. That area extends between $1,722 and $1,691.

Deep retracements frequently appear during wave two corrections. Therefore, current weakness does not cancel bullish expectations immediately. Traders continue watching support closely.

The $1,691 area represents the first warning level. A break below that zone weakens confidence considerably. Meanwhile, $1,668 serves as complete invalidation.

Upside projections remain visible if support survives current pressure. Wave extensions target the $1,930 to $2,040 region. Intermediate resistance levels remain present along that path.

Liquidation Activity Reflects Lower Leverage Conditions

Ethereum liquidation data showed major stress during early February. Long liquidations exceeded $1 billion during sharp declines. Heavy leverage accelerated downside pressure across markets.

Source: Coinglass

Conditions stabilized during February and March trading activity. Liquidation volumes became more balanced across positions. Price action moved inside a broad range.

Another cluster of long liquidations emerged during early June. Short liquidations also appeared during temporary rebounds. Both sides experienced increased volatility during that period.

As of the time of writing, liquidation activity moderated across the Ethereum market. ETH as of the time of writing,traded at $1,658.44 with $12.93 billion volume. The asset fell 5.79% daily and 7.26% weekly.