Downward Spiral Intensifies for Ethereum, Paving Way for Potential Low of $1,350

Table of Contents Ethereum bearish breakdown signals are growing stronger as technical indicators and liquidation data align. Analysts at CryptoQuant have flagged a critical shift in market structure. The recent triangle breakout, combined with weakening moving averages, points to continued selling pressure. If ETH fails to recover key levels, a move toward $1,350 support remains a real possibility for traders to watch. Ethereum’s price action has broken below a key triangle formation on the chart. This breakdown marks the end of a consolidation phase that had kept the price range-bound for some time. The move lower now favors sellers over buyers in the short term. Moving averages have also begun sloping downward alongside the price decline. The short-term moving average is currently trading below the long-term average. This crossover setup confirms that bearish momentum is building across the chart. Relief rallies, when they appear, are continuing to attract selling rather than sustained buying. CryptoQuant analyst @PelinayPA noted that the downward turn in the blue moving average is particularly telling. It reflects deterioration in the broader trend structure rather than a temporary dip. This kind of technical alignment across multiple indicators adds weight to the bearish case. Ethereum Confirms a Bearish Breakdown “If Ethereum fails to reclaim the broken triangle structure, selling pressure could accelerate further, and price may target the $1,350 support level.” – By @PelinayPA pic.twitter.com/HS4pnK7CSO — CryptoQuant.com (@cryptoquant_com) May 20, 2026 The breakdown from the triangle alone does not fully confirm a bearish scenario. However, when combined with sloping moving averages, the technical picture becomes harder to dismiss. Traders are now closely watching whether ETH can reclaim the broken triangle boundary in the sessions ahead. Binance handles a large share of global Ethereum derivatives volume, making its liquidation data critical. Sharp long liquidations have recently coincided with notable price weakness in ETH. This pattern shows that leveraged long positions are being cleared out rapidly. According to @PelinayPA’s analysis on CryptoQuant, these liquidation events often reflect large-scale position unwinding. Institutional and professional market participants are typically behind such moves. The forced selling adds extra downward pressure beyond what spot market activity alone would cause. What stands out further is the market’s failure to recover strongly after each liquidation spike. Normally, clearing out long positions creates conditions for a price bounce. The lack of a meaningful recovery here points to continued structural weakness in ETH. If Ethereum fails to reclaim the broken triangle structure, the $1,350 support level becomes the next downside target. That level represents a key area where buyers may step in to stabilize the price. Until ETH shows a clear technical reclaim, the bearish breakdown remains the active scenario on the chart.