The $3,815 Support Break Is a Game Changer
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.
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Should You Buy or Wait?
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.
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