Ethereum (ETH) has been struggling recently, facing a 27.7% drop in price over the past month, currently trading at $1,976.75. The ongoing downward trend has led analysts to suggest that ETH could fall as low as $1,060 if the market pressure persists. Ethereum has faced numerous challenges, from repeated rejections at key resistance levels to declining network activity.

Ethereum Faces Bearish Pressure

Ethereum’s price action has been particularly concerning in recent weeks. Despite multiple attempts to push above the $4,000 mark, the cryptocurrency has failed to break this significant resistance level. Each failed attempt has contributed to the growing bearish sentiment, with Ethereum’s price steadily sliding lower.

Moreover, Ethereum has recently broken through a key upward trendline that had supported its price for much of the previous market cycle. This break below the trendline is a critical sign that the asset may be struggling to maintain its bullish momentum and could signal more downside if not quickly reversed.

Key Price Levels to Watch

For Ethereum to regain its strength, the $2,500 level is crucial. This price point represents a key resistance level, and reclaiming it could set the stage for a reversal in ETH’s fortunes. However, if the downward trend continues, Ethereum could face more significant declines, with the next major support sitting at $1,060.

If ETH fails to find support at $1,060, the price could continue its downward trajectory, raising concerns about a deeper correction. Traders and investors should keep an eye on these key levels for any signs of stabilization or further declines. Until Ethereum finds a solid bottom, the downward momentum is likely to continue.

Weak Market Sentiment and Bearish Indicators

Ethereum’s current market structure is weak, which is reflected in its daily Relative Strength Index (RSI) of 41.75. While this indicates there may still be room for a short-term price rebound, the broader market conditions remain unfavorable. Ethereum is currently facing several bearish factors, including continuous outflows from Ethereum spot ETFs and a drop in on-chain activity.

Data from Coinglass highlights that Ethereum ETFs have experienced significant outflows in 2025. On March 19, $52.80 million was withdrawn from Ethereum spot ETFs, and over the past week, outflows totaled at least $248 million. This ongoing trend of investors pulling funds from Ethereum ETFs suggests a lack of confidence in ETH, with many opting to shift their investments elsewhere, particularly toward Bitcoin (BTC).

Ethereum’s Declining Network Activity

One of the key drivers behind Ethereum’s struggles is the sharp decline in its network activity. Transaction volumes have significantly dropped compared to the same period last year, indicating a slowdown in overall user engagement. Furthermore, median gas fees on Ethereum’s mainnet have also decreased, reflecting reduced demand for transaction processing. These declines in network activity could signal waning interest in the Ethereum ecosystem, which is concerning for the cryptocurrency’s long-term growth prospects.

Outlook: Can Ethereum Recover?

Ethereum’s recent struggles have left many questioning its short-term and long-term prospects. Despite its historical position as a leading smart contract platform, Ethereum faces serious challenges, including a weakened market structure, falling network activity, and a shift in investor sentiment. If Ethereum fails to reclaim the $2,500 level, it could face a further drop toward the $1,060 support zone.

The broader market dynamics, including declining investor interest and continuous outflows from Ethereum-based ETFs, are putting additional pressure on the cryptocurrency. However, should Ethereum find support at $1,060 and stabilize, it may be able to initiate a recovery. Traders and investors will need to closely monitor key levels and market developments to gauge Ethereum’s ability to turn the tide. Until then, Ethereum remains in a delicate position, with the potential for further declines if the bearish momentum continues.