Ethereum price action remains weak Ethereum / TetherUSBINANCE:ETHUSDTThe_Alchemist_Trader_Ethereum price action continues to display a bearish market structure despite the recent oversold bounce that developed from lower levels. While buyers were able to generate a temporary recovery, the rally lacked conviction and was ultimately rejected from the 0.618 Fibonacci retracement, a level that often acts as a key decision point within corrective trends. The rejection from this Fibonacci resistance is technically significant because it suggests that the recent bounce was corrective rather than the beginning of a sustained trend reversal. Volume throughout the recovery remained relatively weak, indicating a lack of aggressive demand from buyers and reinforcing the notion that sellers continue to control the higher timeframe structure. As a result, Ethereum now faces an increased probability of rotating back toward major higher-timeframe support levels. The inability to reclaim and hold above the 0.618 Fibonacci retracement highlights ongoing weakness and suggests that market participants are continuing to sell into rallies rather than accumulate positions for a larger move higher. The next key area to monitor is the major support region below current price. A move into this zone would represent a critical test for Ethereum's market structure. If buyers can successfully defend support and establish acceptance, the market may be able to stabilize and form a larger base. However, failure to hold this region would significantly weaken the technical outlook. Should support be lost, attention shifts toward the $1,389 level, where a potential swing failure pattern (SFP) could develop. This would occur if price briefly trades below a significant low before reclaiming the level, creating the conditions for liquidity to be swept and a potential reversal to emerge. While such a scenario remains possible, it is not yet confirmed and requires price to first test lower levels. From a broader perspective, Ethereum remains trapped within a bearish environment characterized by persistent weakness, failed recoveries, and declining market confidence. The recent bounce has done little to alter that outlook, particularly given the rejection from a major Fibonacci resistance level. For now, the technical picture remains straightforward. Ethereum is showing signs of weakness, the recovery lacked volume, and the rejection from resistance favors a continuation of the broader downtrend. Unless buyers can reclaim key resistance levels and invalidate the current structure, the probability continues to favor a move toward higher-timeframe support, with $1,389 remaining an important level to watch should further downside develop. In the immediate short term, Ethereum remains bearish despite the oversold bounce, with lower prices continuing to be the higher-probability outcome while the prevailing trend remains intact.