Ethereum (ETH) has broken below a key technical support zone, adding weight to the possibility of further declines.

According to blockchain outlet The Crypto Basic on Tuesday, market analysts see downside pressure dominating over a short-term rebound after Ethereum's chart structure recently broke down.

Pelin Ay (펠린 아이), a verified author at CryptoQuant, said in a recent market outlook that Ethereum had "confirmed a bearish breakdown." Ethereum had moved within a rising triangle pattern since early February, preparing for its next direction, but it fell below the lower support line during a recent correction. It slid to as low as $2,077 earlier this week and then rebounded slightly, but the overall trend was assessed as tilting in favour of sellers.

The price is currently moving around $2,124. Still, it is seen as a burden that it remains below key moving averages. Ethereum is below both the 200-day moving average of $2,576 and the 137-day moving average of $2,337. Both moving averages have also started to slope downward, showing weakening momentum across the market.

The fact that the short-term average is below the long-term trend line also points to limits on any rebound. It means buyers have not regained control yet, and even an upward move could end as a temporary bounce rather than a trend reversal. Ay said the outlook would remain "strongly bearish" if Ethereum fails to recover the broken triangle pattern and key moving averages. She cited $1,350 as the next key support. That is 36 percent below the current price level.

Derivatives market data are sending a similar signal. Binance liquidation flows are drawing particular attention. The analyst cited the fact that a significant share of Ethereum derivatives trading takes place on Binance as the reason this indicator matters. Recently, long-position liquidations have surged sharply several times, but Ethereum's price failed to turn that into a meaningful rebound. Instead, the price fell further, triggering additional unwinding of bullish positions.

This reaction is read as meaning selling pressure is stronger than attempts to rebound. It also suggests institutions and large market participants may be reducing their positions. Another analyst, Ali Martinez (알리 마르티네즈), pointed to a similar trend. He said that over the past two months, about 60 whale addresses holding at least 10,000 ETH each emptied or sharply reduced their holdings.

Alongside the drop in whale numbers, large inflows to exchanges have also been confirmed recently. The market sees this as a signal that strong selling pressure is at work on Ethereum. In this situation, whether Ethereum regains its trend line or slides into a further decline zone is expected to be a short-term focal point.