Ethereum Faces Bearish Momentum, Eyes $7,000 Target

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been a pivotal player in the crypto market, driving advancements in decentralized finance (DeFi), smart contracts, and blockchain applications. However, after reaching an all-time high of $4,878 in November 2021, ETH has faced multiple price corrections, currently trading around $1,967. This prolonged downtrend has raised concerns among investors, who are now questioning whether Ethereum can break out of its bearish trend and rally to an ambitious target of $7,000.

To determine the likelihood of Ethereum reaching $7,000, it is essential to analyze ETH’s price action, key resistance and support levels, and technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). Additionally, understanding the fundamental catalysts that could drive Ethereum to new highs is crucial. The daily chart shows a continued downtrend, with ETH currently hovering around $1,967 after failing to hold higher support zones. A critical question arises—can Ethereum overcome this bearish momentum and reach the ambitious $7,000 target?

From a technical perspective, the market structure reflects a bearish sentiment, but a potential reversal pattern may be forming. The RSI is near oversold levels, and the MACD is showing early signs of bullish divergence. These indicators suggest that Ethereum might be nearing a short-term bottom, which could set the stage for a recovery. Ethereum faces strong resistance at $2,100, where past price action has seen multiple rejections. If ETH price successfully breaks this level, the next targets would be $2,500 and $3,000. However, failure to do so could lead to a retest of support around $1,800. A key bullish signal would be ETH reclaiming $2,500 as support, as this could provide the momentum needed for a long-term uptrend. On the downside, if Ethereum loses the $1,800 support, we could see further bearish movement toward $1,500 before any potential recovery.

The RSI (14) is currently at 35.79, which is very close to the oversold territory (below 30). This indicates that selling pressure might be nearing exhaustion, and a relief rally could be on the horizon. If the RSI moves above 40 and sustains, it would confirm the start of bullish momentum. The MACD (12, 26), however, remains bearish with negative histogram bars. The MACD line is below the signal line, confirming a downtrend, but the negative momentum appears to be slowing. If the MACD line crosses above the signal line, it would confirm a bullish trend shift, signaling a potential rally.

For Ethereum price to reach $7,000, it would need to experience a major macroeconomic shift or a significant fundamental catalyst, such as a Bitcoin rallying above $100K, increased DeFi and Layer-2 adoption, or global liquidity expansion. Currently, ETH price is far from the $7,000 target, but a break above $3,500 would be a major bullish confirmation, setting the stage for a long-term rally toward higher price targets. At $1,967, Ethereum is trading at a significant discount compared to its previous highs. The indicators suggest a potential bottom formation, but confirmation is needed through price reclaiming key resistance levels like $2,100 and $2,500. For short-term traders, waiting for a breakout above $2,100 could be a safer strategy. For long-term investors, accumulating ETH at current levels might offer strong returns if Ethereum’s fundamentals continue improving. While $7,000 is an ambitious target, it is not impossible. If ETH breaks out above $3,500 and Bitcoin reaches new highs, Ethereum could enter a parabolic phase, making $7,000 achievable in the next bull cycle.