Next, the price of Ethereum is at risk of falling to 1.2 thousand dollars, the analyst warns
Ethereum's native token Ether (ETH) could drop 40% to $1,200 in the coming weeks, according to a fractal setup shared by analyst Leshka.eth.
Main Receptors:
Ethereum setup flash bull trap warning
Ethereum's $1,200 lower target comes from a Supertrend setup on the daily chart that has previously seen two bullish reversals fail and lead to major breakouts.
Supertrend is a simple trend-following line drawn directly on a price chart. It changes color to show the current market direction: green when the trend is up and red when the trend is down.
ETH flashed similar bullish reversals in October 2025 and January 2026, but neither took place.
In both cases, the price moved above the Supertrend's upper band, which began to act as support. Once ETH lost that support, the recovery unraveled and the price dropped 45% and 48% respectively.
“The same setup is now being created for $1,990,” Leshka.eth said.
“If that level breaks, the next target is the $1,200 zone.”
This coincides with the measured downside target of Ethereum's Dominant Bear Flag as shown below.
Bearish structures are taking shape as Ethereum retraces its March gains against a worsening macro backdrop.
RELATED: Ether Traders See ‘Further Bearish' As ETH Price Drops Below $2K
Concerns about a US-Israeli war with Iran have dampened appetite, fears of a recession have risen, and bond traders don't expect the Fed to cut rates before December 2027.
ETH has fallen more than 17% from its monthly high two weeks ago. U.S. spot ETFs saw net inflows of nearly $300 million over the same period.
Apparent demand for Ethereum also fell to a 16-month low.
ETH holdings remain weak
Ethereum's recent rebound hasn't sparked broad-based accumulation on major wallet clusters, according to Glassnode data.
For example, the number of mega-well wallets holding more than 10,000 ETH at the end of 2025 is flat, while the 30-day volatility shows a return to neutrality after months of decline.
In other words, the largest holders are not accumulating power.
The picture appears to be similar among smaller wallet clusters.
Ethereum whales holding between 1,000 and 10,000 ETH remain below the 2025-2025 closing high, with the 30-day trend hovering flat to slightly negative levels.
Shark addresses holding 100 to 1,000 ETH also continued to fall below last year's highs, suggesting that mid-sized and small-cap holders have not returned as strong buyers.
Taken together, the data suggests a continued spread and weak confidence in key ETH holding groups, reinforcing the risk of a deeper downside if $1,990 is broken.
As Cointelegraph reports, one of the few bullish signs for Ethereum include rising Ether reserves and the supply of exchanges falling to a decade-low.
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