Ethereum Faces Critical Test as Technical Analysts Warn of Bearish Pressure

The Ethereum market is facing a critical test as technical analysts warn that a price breakdown below $1,850 could have serious consequences for the cryptocurrency's medium-term structure.

According to Ali Martinez, a technical analysis published by the analyst suggests that if Ethereum prints a weekly close below $1,850, a downside acceleration becomes highly likely. The first bearish target would be located near $1,560, and in the worst-case scenario, the decline could drag the price toward the lower limit of its multi-year channel, situated near $1,070.

The bearish pressure is being fueled by prolonged disinterest from traditional financial institutions, with U.S. spot Ethereum ETFs accumulating a streak of thirteen consecutive days of capital withdrawals as of late May 2026.

David Hoffman, co-founder of Bankless, has also sold his entire ETH holdings, citing that the token has reached its fair value and lacks additional upside potential. However, Standard Chartered's projections point to a target of $4,000 by the close of 2026 and $40,000 looking ahead to the year 2030, driven by the industry's projected growth for 2028.

The market will decide the validity of these projections based on Ethereum's ability to hold the $1,850 level. The outcome of this critical test will have significant implications for the cryptocurrency's price and its dominance in the tokenized assets and stablecoin sectors.