Ethereum may face a significant decline to $1,200, according to analyst Leshka.eth, who highlights technical patterns resembling historical "bull traps." The cryptocurrency's price action has shown failed "bullish reversal" signals, leading to sharp corrections of up to 48%. A similar pattern is forming near the $1,990 level, with a break below potentially triggering further downside. Fundamentally, Ethereum is under pressure from weak capital flows and macroeconomic factors. U.S. spot Ethereum ETFs have experienced $300 million in net outflows, and on-chain demand has hit a 16-month low. Additionally, large holders have not increased their positions, indicating a lack of strong buying support. Geopolitical tensions and shifting expectations for Federal Reserve rate cuts are also dampening risk appetite, contributing to Ethereum's vulnerability.