Ethereum may face a new round of downward risk, analysts warn it could drop to $1200

Crypto analyst Leshka.eth expressed the view that the price trend of Ethereum is recently showing a technical pattern similar to historical "bull market traps," with a risk of further decline in the short term, potentially targeting $1200, representing a potential drop of about 40% from current levels. The technical indicators show that the Supertrend indicator on the daily chart for ETH has failed to sustain its previous two "bullish" signals, which subsequently triggered significant corrections of 45% and 48%. A similar structure is currently appearing again at the critical level of about $1990, and if it breaks down, it may trigger a new round of accelerated decline.

The fundamentals and capital flows are also weak. On the macro level, geopolitical conflicts in the Middle East and recession expectations are suppressing risk appetite, while the market's expectations for the Federal Reserve to cut interest rates have significantly shifted. In terms of capital flows, there has been a net outflow of about $300 million from the U.S. spot Ethereum ETF recently, and on-chain demand has dropped to a 16-month low. On-chain data shows that the number of large holding addresses (≥10,000 ETH) has stagnated since peaking, and there are no significant signs of accumulation from "whale" and "shark" addresses in the 1,000 to 10,000 ETH and 100 to 1,000 ETH ranges, respectively, indicating a state of distribution and wait-and-see. In the absence of strong buying support, if key support levels are lost, the price of ETH may face further downward pressure.