Ethereum is once again under pressure as a fresh wave of selling drags the cryptocurrency below the $3,700 level. The renewed weakness follows a failed attempt to break past $3,880, with bears now tightening their grip on the market. The $3,550 support level has become the key area to watch — a decisive move below it could trigger further declines in the short term.
At the time of writing, Ethereum is trading below $3,700 and the 100-hourly Simple Moving Average (SMA), reflecting a clear shift in short-term sentiment. The broader market correction, led by Bitcoin’s recent pullback, has added pressure on major altcoins, including ETH.
Price Action: Bears Extend Control
The latest price movement shows Ethereum struggling to find buying strength after an earlier rejection near $3,880. The selling intensified once ETH slipped below $3,750, accelerating the move toward $3,550, where buyers attempted to hold the line.
Data from Kraken indicates that a contracting triangle pattern has formed on the hourly chart, with resistance near $3,650. This structure reflects a period of consolidation, but with sellers maintaining dominance, the next decisive move could likely favor the downside.
Ethereum’s recent low at $3,557 has become an important pivot. A sustained close below this level would confirm renewed bearish control and open the path toward $3,500 and possibly $3,420.
Technical Setup: Key Resistance and Support Zones
If Ethereum attempts a recovery, immediate resistance sits at $3,650, followed by a more significant barrier at $3,740. The 50% Fibonacci retracement level of the latest decline — from $3,920 to $3,557 — aligns with the $3,740 zone, making it a crucial test point for any upward attempt.
The next resistance lies at $3,800, coinciding with the 100-hourly SMA. A breakout above this level could allow Ethereum to retest $3,880, a zone where prior rallies have consistently faced rejection. If momentum strengthens beyond $3,880, buyers could push the price toward the $4,000–$4,050 range in the short term.
On the downside, $3,580 and $3,550 serve as immediate supports. A clear breakdown below $3,550 could intensify selling pressure and bring $3,500 into focus. Below that, major support sits at $3,420, followed by $3,350 and $3,320 — levels that could define the next phase of market stability or decline.
Market Sentiment Turns Bearish Again
The broader crypto market has entered another period of uncertainty, with risk sentiment weakening across major assets. Ethereum’s failure to hold above $3,800 signals hesitation among buyers, who appear cautious after several short-lived rallies.
Technical analysts warn that the market could face another wave of correction if the current support zones fail to hold. However, long-term investors continue to view the ongoing consolidation as part of a broader market structure rather than a complete trend reversal.
The recent correction is also seen as a healthy adjustment following weeks of gradual gains. Ethereum’s fundamental strength — including growing adoption in decentralized finance (DeFi) and Layer 2 ecosystems — continues to provide a bullish backdrop over the long run.
Indicators Reflect Persistent Weakness
The MACD (Moving Average Convergence Divergence) for ETH/USD remains firmly in the bearish zone, showing no signs of reversal yet. Momentum indicators suggest that selling strength could persist in the near term unless the price reclaims levels above $3,700.
Meanwhile, the Relative Strength Index (RSI) has dipped below 50, confirming bearish dominance. The RSI, however, is not yet oversold, implying that there may still be room for further downside before a technical rebound occurs.
Key Levels to Watch
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Immediate Resistance: $3,650 and $3,740
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Major Resistance: $3,800 and $3,880
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Immediate Support: $3,580 and $3,550
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Major Support: $3,500 and $3,420
Traders are advised to watch the $3,550 support level closely. A decisive daily close below it could extend the correction, while a rebound above $3,650 might provide short-term relief for bulls.
Short-Term Outlook: Pressure Persists, But Bulls Still Have Hope
While short-term sentiment has turned bearish, Ethereum still holds potential for recovery if it can defend key supports. A bounce from the $3,550 zone could trigger renewed optimism, especially if accompanied by an uptick in trading volume.
However, if sellers manage to force a breakdown below $3,500, the market could enter a deeper correction phase, with prices potentially heading toward $3,350 before stabilizing.
In the longer view, Ethereum remains a central player in the digital asset market, with its ecosystem expansion and upcoming protocol upgrades likely to strengthen its position once current market volatility subsides.
As traders navigate this period of uncertainty, $3,550 stands as the crucial level separating short-term recovery hopes from deeper losses.
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