Ethereum (ETH) is currently experiencing a significant downturn, with a drop of 11% in the past week, indicating a prevailing bearish trend. The Relative Strength Index (RSI) is showing weakness, reflecting a lack of strong buying interest, while the Directional Movement Index (DMI) affirms that sellers are still dictating the market.

Moreover, the Exponential Moving Averages (EMA) signal a firmly bearish pattern, hinting at a potential test of critical support levels at $1,756 and the chance of dipping below $1,700 for the first time since October 2023.

The RSI for ETH indicates a deficiency in buying pressure, currently standing at 34.4, showing a slight recovery from a recent dip to 27.4. With the RSI persistently below the 50 level for three days, the bearish momentum remains prominent.

Ethereum's DMI portrays a strong downtrend, with the Average Directional Index (ADX) climbing to 29.82, confirming the strengthening of the current bearish trend.

The EMA alignment suggests a continuous downward movement for ETH, with potential support levels at $1,756 and a likely drop below $1,700 unless a significant reversal occurs.

While challenges persist for Ethereum to surpass the $2,000 mark, breaking above $1,996 could pave the way for a recovery towards $2,320 and possibly $2,546, contingent on sustained buying interest and a positive EMA crossover to indicate a reversal from the current bearish phase.