Ethereum Price Chart Warns of a 20% Crash— Can BTC-to-ETH Rotation Stop It?

Ethereum price is down about 1.3% over the past 24 hours and nearly 10% over the past week. This is no longer just short-term volatility. On the daily chart, the ETH price has already broken below a key neckline, activating a bearish structure that warns of a potential 20% downside if support fails. At the same time, a new variable has entered the picture. Capital appears to be rotating from Bitcoin into Ethereum, helping spark a short-term rebound. Whether that rotation can turn this breakdown into a bear trap now depends on who is actually buying, who is selling into strength, and which price levels hold next. Ethereum Breakdown Activates, But BTC-to-ETH Rotation Sparks a Rebound Ethereum has been forming a large head-and-shoulders structure on the daily chart since late November. This pattern typically signals a bearish reversal once the ETH price breaks below the neckline, which acts as the final support holding the structure together. That breakdown occurred on January 25, when Ethereum fell below the $2,880 neckline and briefly dipped toward the $2,780 zone. Based on the height of the pattern, this breakdown activates a downside projection of just over 20% if selling pressure accelerates. However, the move did not extend immediately. After tagging the lows, Ethereum rebounded by roughly 4–5%. Ethereum Breakdown Structure: TradingView Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here. This bounce coincided with visible rotation from Bitcoin into Ethereum, highlighted by large on-chain swaps where BTC exposure was reduced in favor of ETH. WLFI(@worldlibertyfi) is rotating from $BTC into $ETH.About 6 hours ago, @worldlibertyfi swapped 93.77 $WBTC($8.08M) for 2,868 $ETH.https://t.co/kaRan1WMwF pic.twitter.com/yQj8OVHZ8U— Lookonchain (@lookonchain) January 26, 2026 Rotation like this often appears near local lows. Traders shift capital into assets that have already corrected, betting on mean reversion. But rotat...