What does descending mean in ETH? The technical triangle that warns of possible deeper drops

Ethereum faces a critical moment. With ETH currently trading at $2.05K and a positive performance of +5.07% in 24 hours, the recent technical breakout raises questions about the market’s strength. The support at $2,800 has given way, activating a chart pattern that analysts are watching closely: the descending triangle, a formation that historically precedes more aggressive downward moves.

The breakdown of the descending triangle: what this technical pattern means

What does descending mean in the context of price charts? It refers to a technical figure where the highs contract toward lower levels, while the lows remain relatively stable. This geometry creates psychological pressure: sellers gradually gain ground until they finally break the lower support. When that breakout occurs, as with Ethereum losing the $2,800 zone, it triggers a cascade of sell-offs.

According to technical logic, once the breakout is confirmed, the next support level would be around $2,500, where the 200-week moving average lies. If this level fails to contain the pressure, the theory points toward $2,100, representing an additional drop of approximately 22% from ETH’s current position. These levels are not arbitrary; they are zones where multiple traders historically converge with buy orders.

NUPL: the indicator that predicted the winters of 2018 and 2022

Beyond what charts show, there is a on-chain indicator called NUPL (Net Unrealized Profit/Loss) that provides crucial information about holder sentiment. This indicator measures whether network participants are in profit or loss on their positions without having sold yet, reflecting the emotional state of the market.

Currently, NUPL has moved from the anxiety zone into the fear territory, a shade of orange that has historically preceded prolonged contraction periods. During 2018 and 2022, when Ethereum exhibited this same indicator at similar levels, the market experienced extended winters characterized by sustained declines and slow recoveries. The replication of this pattern raises concerns among more experienced participants.

The bearish convergence is also evident in the moving average crossover: the 111-day MA has fallen below the 200-day MA, an event that historically signals that the selling momentum has gained the upper hand. Technically, this crossover confirms that the bullish phase has lost strength against the downward pressure.

Accumulate at the lows or respect the decline?

The question that polarizes the community is fundamental: is this an opportunity to accumulate assets at lower prices, or is it the prelude to a crypto winter that demands caution in portfolios?

The bulls bear the responsibility to demonstrate that the movement will reverse. So far, technical analysis and sentiment indicators do not offer strong arguments for an immediate recovery. Selling pressure remains firm, and only a clear reclaiming of $2,800 would alter the current bearish narrative dominating the price action.

For those considering long positions, the risk of further declines toward $2,500 or even $2,100 is a factor that must be weighed carefully against the potential for re-entry at lower levels. The current context does not allow ignoring that on-chain metrics and chart patterns are converging in one direction: until a confirmed structural change occurs, prudence advises closely monitoring ETH’s next moves.