Ethereum (ETH) has entered a short-term downtrend, jeopardizing its recent bullish momentum after slipping below the critical $3,000 level. The drop comes after ETH’s earlier breakout this month, which saw the token surge above its 200-day EMA for the first time in months—a key technical milestone that now appears to have been a false breakout.

A breakdown from a falling wedge pattern, typically a bullish continuation setup, has instead acted as a reversal trap, suggesting weakening market conditions rather than a healthy pullback. With Ethereum closing below the 200 EMA—now flipped from support to resistance around $2,438—the bearish outlook intensifies. If ETH fails to find support at the $2,200–$2,170 range, a retest of $2,000 becomes highly probable.

Adding to the concern, trading volume has shown no sign of bullish support. Despite consecutive red candles in recent sessions, there’s been little increase in buying pressure, indicating growing uncertainty among investors. The absence of strong volume confirms weakening sentiment and hints that bulls were unprepared for actual resistance following the breakout.

While ETH’s broader macrotrend remains technically intact, this local downturn could drag the wider crypto market down if left unchecked. The recent price action underlines just how fragile Ethereum’s rally was and raises concerns about sustainability without firm technical support and renewed buyer confidence.

Searches related to Ethereum’s price trends, 200 EMA significance, and falling wedge breakdowns are likely to surge as investors seek clarity. Until ETH reclaims key support zones, traders should brace for further downside.