Ethereum price crashed to a key support level on Monday, increasing the risk of further downside after invalidating a crucial bullish chart pattern. Ethereum ( ETH ) dropped to a low of $2,146, its lowest level since August last year. It has declined by approximately 40% from its December high. Ethereum price invalidates inverse H&S pattern The weekly chart shows that Ethereum has formed two distinct patterns in recent months. First, it developed a triple-top formation around the $4,000 level, struggling to break above that point since March last year. A triple-top is a well-known bearish signal, often leading to further losses once the price drops below the neckline. In Ethereum’s case, the neckline was at $2,146, which was its lowest level in August last year. You might also like: Bitcoin price signals potential rebound despite $393m liquidation Ethereum also formed an inverse head and shoulders pattern, a popular bullish indicator. This pattern consists of a neckline, two shoulders, and a head. In this case, the neckline was at $4,000, the right shoulder was at $2,830, and the head was at $2,145. However, Ethereum has invalidated the inverse head and shoulders pattern by moving below the left shoulder. With the triple-top pattern now in play, Ethereum could face further declines, potentially dropping to the next key support at $1,520, its lowest point in October 2023. A strong bullish breakout would only be confirmed if Ethereum rallies above the triple-top resistance at $4,000. Ethereum price chart | Source: crypto.news ETH network is facing major challenges Ethereum’s price struggles come as the network grapples with significant challenges. Data from TokenTerminal data shows that Ethereum is no longer the most profitable blockchain network. So far this year, Ethereum has generated $155 million in fees, falling behind Circle, which has earned $169 million. Meanwhile, Solana, Tron, Jito, and Tether have posted $261 million, $294 million, $303 million, and $414 million in fees, respectively. Ethereum has also lost its long-held dominance in the decentralized exchange sector. Over the past seven days, decentralized exchanges built on Ethereum processed nearly $20 billion in transactions—lower than BNB Chain’s $25.7 billion and Solana’s $42 billion . Tron ( TRX ) has also surpassed Ethereum in stablecoin transaction volume, primarily due to its lower transaction fees. Furthermore, spot Ethereum exchange-traded funds have seen a lukewarm reception on Wall Street, attracting just $2.76 billion in inflows since September last year. In contrast, Bitcoin funds have secured over $40 billion. You might also like: Mantra price rises after new validator deal, open interest nears ATH
