Ethereum's Bear Flag Formation Signals Continued Downside Risk

Ethereum's price has shown small signs of stability following a sharp sell-off, but its overall structure remains bearish. ETH is trading around $1,670 with a 24-hour gain of just over 1%, according to data from MEXC.

The recovery looks fragile rather than sustainable at this stage. Crypto analyst Ted pointed out that ETH is still trading inside a bear flag formation, which typically signals continued downside unless the price breaks free.

For ETH to shift the outlook, it needs to close above the $1,700 resistance level. A confirmed break there could push the price toward $1,850-$1,900. However, if that resistance holds, the risk of another leg lower returns, with the $1,500 support level coming back into focus.

Large withdrawals from exchanges can indicate that holders are moving coins into cold storage, which some read as an early accumulation signal. Nearly 500,000 ETH - worth roughly $800 million - were pulled from trading platforms over the past week, according to on-chain data.