Ethereum Final Dip? Analysts Call For New Low Amid $1,900 Drop

After the latest Ethereum (ETH) pullback, some analysts have pointed to a bearish setup that suggests the leading altcoin could see another correction toward its potential market bottom.

Ethereum Bear Setup Breakdown Spells Trouble

On Tuesday, Ethereum saw a 5.5% intraday drop from its daily opening, falling below the $1,900 barrier for the first time since late February. Notably, the King of Altcoins broke down from its five-day range between $1,965-$2,035, reaching a two-month low of $1,880.

Amid today’s broader pullback, which also sent Bitcoin (BTC) toward the $67,000 support, market observer Trader Tardigrade affirmed that ETH’s final correction may be around the corner as a key bearish pattern is “repeating perfectly.”

The trader pointed out a breakdown from a bear flag formation on the altcoin’s three-day chart. The setup had been forming since the February market crash, with the cryptocurrency breaking out of the pattern’s lower boundary around mid-May, when the price lost the $2,200 area.

ETH’s second bear flag breakdown targets new lows. Source: Trader Tardigrade on X

According to the above chart, this is the second time this pattern has formed since the Q3 2025 highs, with the first setup developing between late 2025 and early 2026, and resulting in the Q1 2026 40% crash.

More importantly, Ethereum appears to be repeating the same path as its correction from the Q4 2024-Q1 2025 rally. After topping in late 2024, the cryptocurrency printed two consecutive bear flags, followed by a fresh leg down, before reaching its local bottom and eventually starting a new bullish rally.

Now, “the structure is identical. Same breakdown. Same setup,” which suggests that “the final dip” toward the market bottom may be around the corner. “Once this dip completes, we’re headed straight into the next explosive leg up,” the trader stated.

Where Is ETH Headed?

Analyst Rekt Capital noted that Ethereum closed the month below its multi-year uptrend for the second time in five months. The last time this happened, the altcoin saw a “limited move to the upside” but was quickly rejected from the crucial $2,400 horizontal level.

This signals that the rallies stemming from this trendline “are clearly weakening,” with the multi-year uptrend “likely faltering.” According to the analysis, ETH must hold the 2026 lows, around $1,750, or reclaim the uptrend to avoid a deeper correction.

Similarly, Ali Martinez named this level a crucial support amid the recent price action. As he explained, Ethereum is approaching the bottom of its four-month horizontal channel, which is near the $1,825 level.

To the analyst, “that area could offer a favorable risk-reward entry targeting $2,073 and $2,360, as long as price remains above $1,750 on a daily closing basis.”

However, he has previously warned that since the price was rejected from the mid-zone of a multi-year channel and the 200-week Simple Moving Average (SMA), the altcoin risks a deeper correction.