Ethereum is facing increased downward pressure after losing the crucial $3,150 support zone. The asset has dropped more than 5% in a single session, slipping below the $3,000 psychological level and signaling the possibility of deeper losses if bulls fail to regain momentum. Market sentiment remains fragile as technical indicators point toward extended bearish activity in the short term.
ETH Declines Sharply After Losing the $3,150 Support Zone
Ethereum attempted to hold above the $3,150 mark earlier this week but failed to maintain strength against growing selling pressure. Once the price slipped below $3,150, bearish momentum accelerated, mirroring the broader market decline led by Bitcoin. The drop below $3,120 triggered additional sell-offs, dragging ETH beneath the important $3,000 threshold.
A recent low formed around $2,955 before the asset attempted a mild recovery. However, the bounce has been weak, with the price struggling to climb back above the 23.6% Fibonacci retracement level, measured from the $3,562 swing high to the $2,955 local low.
Technical Landscape Suggests Ongoing Bearish Momentum
Ethereum is currently trading below both $3,100 and the 100-hourly Simple Moving Average—two indicators that reinforce a bearish structure. Short-term market momentum remains weak, while resistance zones overhead continue to push down on attempted recovery efforts.
The nearest resistance sits at $3,050. Above this, ETH faces a stronger barrier at $3,150, aligned with a key bearish trend line on the hourly chart. This zone remains essential: a breakout above it could signal a short-term shift in momentum. However, the current price action shows buyers struggling to build enough strength to challenge this level.
A major resistance also appears near $3,260, corresponding with the 50% Fibonacci retracement level of the same $3,562–$2,955 move. A confirmed close above $3,260 would be required to re-establish bullish momentum. Only then could ETH attempt to push toward $3,350 and potentially retest $3,450–$3,500 in the days ahead.
Downside Risks Grow as Support Levels Begin to Weaken
While ETH has briefly stabilized above $2,955, the lack of strong volume during the bounce suggests sellers still dictate market behavior. If Ethereum fails to reclaim $3,150 soon, another leg downward appears likely.
The first critical support lies near $2,950. Below that, the next major support zone sits at $2,880 — an area that has historically triggered relief bounces during previous corrections.
If bears manage to drive the price below $2,880, a deeper correction could unfold. In this scenario, the next major downside target becomes $2,750—a level that coincides with a longer-term support trend visible on the daily chart. Continued losses beyond this point could push ETH toward $2,680, and in a severe downturn, even $2,640 may be tested.
Market analysts warn that losing the $2,880–$2,750 region would shift Ethereum decisively into a broader bearish pattern, potentially extending the correction through the coming weeks.
Market Sentiment Reflects Fear as Sellers Dominate
Ethereum’s decline comes during a period of broader risk-off sentiment across financial markets. With Bitcoin facing its own challenges and multiple indicators showing weakness, ETH continues to mirror the downward pressure.
Investor confidence appears shaky, particularly as ETH fails to maintain higher support zones that previously acted as springboards for new rallies. The crypto market’s reaction to macroeconomic uncertainty — including interest rate concerns and weaker liquidity — has added additional strain to major altcoins like Ethereum.
Retail traders and short-term investors remain cautious, while whale inflows have slowed compared to October’s strong accumulation phase. This combination contributes to the prevailing bearish bias.
Can Ethereum Regain Strength? Key Levels to Watch
For Ethereum to regain stability, buyers must first reclaim the $3,050 resistance. A stronger recovery attempt requires breaking and closing above the $3,150 trend-line resistance. Only then can ETH aim for a move toward the mid-range resistance at $3,260.
A breakout beyond $3,260 would indicate bullish strength returning to the market. However, without improved trading volume, the probability of a sustained rally remains low in the near term.
On the downside, a clean break below $2,880 would be a strong bearish signal. If ETH falls below $2,750, markets may prepare for extended decline toward the $2,650–$2,680 region.
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