Ethereum Drops 13% in Three Days, Bearish Momentum Intensifies

Coin WorldSunday, Jun 22, 2025 11:42 am ET
2min read

Ethereum's price has been on a downward trajectory, struggling to maintain its position above $2,240 after a sharp decline from the $2,600 region. The daily candle has closed in the red for three consecutive sessions, confirming a break below the critical $2,425–$2,450 demand zone. The intraday action is heavily bearish, with the Relative Strength Index (RSI) nearing oversold levels and the Moving Average Convergence Divergence (MACD) momentum weakening across multiple timeframes.

The 4-hour chart for Ethereum confirms a breakdown below the rising wedge structure that held throughout mid-June. The current price action is trading around $2,245, far below the 20/50 Exponential Moving Average (EMA) cluster near $2,480–$2,525. The price also remains outside the lower Bollinger Band ($2,243), indicating that Ethereum price volatility is elevated and downside risk is expanding.

The Volume Weighted Average Price (VWAP) on the 30-minute chart sits above the price at $2,276, while the Parabolic SAR dots hover above the candles, showing persistent bearish momentum. From a broader trend perspective, the daily chart shows a rejection from the $2,800–$2,850 supply zone, with Ethereum now testing the long-term trendline that began in April near $2,230. A close below this support could trigger further downside toward the $2,070–$2,100 region.

The bearish narrative is supported by both price structure and on-chain sentiment. The RSI on the 30-minute and 4-hour charts has dropped below 30, now printing 29.85 — a sign of short-term exhaustion, but not yet a confirmed reversal. The MACD histogram on lower timeframes remains flat, with a weak bullish crossover that lacks conviction. Adding to the bearish narrative, spot Ethereum price spikes have aligned with net outflows. According to on-chain data from June 21, ETH saw a net outflow of $140.76 million, indicating that traders are withdrawing assets from exchanges — typically a bearish signal when accompanied by falling prices.

The Supertrend flipped red on June 20 and remains bearish with no reversal signals yet. The ETH price also broke below the rising wedge trendline on the intraday chart. Bearish pressure remains intact unless the price can reclaim the $2,310–$2,330 zone with strength. The structure shows ETH trading below key moving averages, including the 20/50/100/200 EMAs on the 4-hour chart. The next immediate support lies at $2,230 — the lower trendline zone from the broader daily channel. If this fails, a move toward $2,100 is likely.

On the upside, reclaiming $2,310 (VWAP and Bollinger mid-line) could open the path toward $2,434 (BB basis) and $2,483 (EMA50). However, volume is thinning, and volatility is expanding, increasing the risk of another leg down before any meaningful recovery attempt. The Ethereum price update remains bearish while short-term indicators reflect momentum loss. Only a strong push above $2,425 would invalidate the current structure.

Ask Aime: What should I do with my Ethereum investment now?