Ethereum Price Warning Grows as $1,600 Support Falters

Ethereum's price has fallen significantly in recent days, dropping nearly 14% from its June high and below several long-term trend indicators. The token is currently trading near $1,600, a level that could potentially be reached if support fails to hold.

Data from Santiment shows Ethereum approaching a milestone of 200 million non-empty wallets, while CryptoQuant data indicates record futures positioning on Binance. However, despite these signs of network activity and derivatives exposure, ETH continues to trade near its weakest levels of the year.

The weekly chart for Ethereum shows the token trading below its 100-week, 200-week, and 300-week exponential moving averages, which sit at $2,704, $2,522, and $2,245 respectively. This breakdown has removed one of the last major trend supports visible on the higher timeframe chart.

The daily chart for Ethereum shows the token attempting to stabilize around the $1,600 region after a steep decline from the $2,400 area reached in May. However, recent buy signals near the $1,550 to $1,600 area have been limited, suggesting dip buyers have not yet generated enough strength to reverse the downtrend.