The Ethereum price is showing a concerning downward trend, causing anxiety among traders. A critical support level is looming, and its breach could trigger a sharp drop towards $3,400. The upcoming hours will be crucial for the second-largest cryptocurrency in the market.
The breakdown below the support level at $3,815 represents a major technical turning point for Ethereum. This level had served as solid support during previous downward attempts, and its loss fundamentally alters the market structure. Indeed, ETH now displays a lower low. This means that as long as the $4,500-$4,700 range isn’t reclaimed, ETH remains in bearish territory.
Price action since this breakdown reveals persistent selling pressure. Rebound attempts consistently hit increasingly lower resistance levels, forming a series of descending peaks characteristic of an established downtrend. Buyers struggle to regain control, and each rally is quickly absorbed by sellers.
More concerning still, ETH displays a negative Woodies CCI on the weekly chart. The last time this occurred, ETH fell by 60% from its local high. A similar drop would take ETH’s price to approximately $1,500.
If the current support gives way, the next technical target would indeed be around $3,400 to $3,200. This zone corresponds to a significant Fibonacci retracement level as well as a former resistance that became support during the previous bullish phase. Traders are also scrutinizing volume patterns to detect potential signs of capitulation or institutional accumulation.
Get a $10 bonus and a free AI agent to maximize your gains on Bitget by signing up now:
Savvy investors are keeping a close eye on several key indicators. Holding the support around $3,800 constitutes the first line of defense for short-term bulls. A daily close below this psychological threshold would strengthen the bearish scenario and open the path toward the $3,400 level mentioned earlier.
It’s also crucial to monitor ETF flows to determine whether institutions are preparing to absorb the selling pressure or not. For now, as long as BTC maintains $106,000, bulls still have a chance to save ETH.
To conclude, the macroeconomic context remains a significant factor. Correlations with traditional markets, particularly the Nasdaq, continue to influence Ethereum’s trajectory. Major economic announcements could trigger volatile movements and accelerate or reverse the current trend depending on the general market sentiment.
Related articles:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
