Ethereum (ETH) has entered another wave of selling pressure, plunging more than 10% in the last 24 hours. The second-largest cryptocurrency is now struggling to stay above the crucial $3,200–$3,250 demand zone, as traders debate whether the bulls can stage a recovery or if a deeper correction is underway.
Ethereum Faces Renewed Selling Pressure
Ethereum’s latest decline comes after the asset failed to hold above the $3,650 resistance level, triggering a wave of liquidations across the market. Following Bitcoin’s recent drop below $110,000, ETH mirrored the weakness, falling through multiple support levels, including $3,550, $3,500, and $3,400.
Data from Kraken shows that the ETH/USD pair dipped as low as $3,058 before buyers temporarily stepped in to slow the bleeding. The bearish momentum, however, remains strong as ETH trades well below the 100-hourly Simple Moving Average (SMA) — a sign that short-term sentiment has flipped negative.
Technical Breakdown: Resistance Levels Mounting
According to on-chain and technical data, Ethereum is currently forming a bearish trend line with resistance near $3,450 on the hourly chart. This level coincides with the 50% Fibonacci retracement zone, measured from the recent swing high of $3,920 to the local low of $3,058.
If bulls fail to push ETH above $3,450–$3,500, the likelihood of further downside pressure increases. The next key resistance levels are found at $3,550 and $3,750, but reclaiming these zones would require a clear shift in momentum — something the current market structure does not yet support.
Sellers Target $3,200 as the Next Line of Defense
On the downside, the first critical support sits near $3,250, followed by the $3,200 psychological zone. A decisive break below this level could expose ETH to deeper losses toward $3,120 and possibly $3,000, where a stronger cluster of buy orders may provide temporary relief.
If sellers continue to dominate, a further drop toward $2,950–$2,900 cannot be ruled out, especially if Bitcoin fails to recover its own short-term support levels. Historically, Ethereum’s $3,000 level has acted as a magnet for high-volume buying, meaning bulls could attempt to re-establish control around that zone.
Bulls Eye a Relief Bounce — But Momentum Is Weak
Despite the bearish pressure, short-term technicals suggest that Ethereum could attempt a relief bounce if buyers manage to hold the $3,200 support. The 23.6% Fibonacci retracement level from the $3,920 to $3,058 range has already been tested, indicating that a minor corrective move might be underway.
If ETH can reclaim $3,480–$3,500, it may open the door to a short-term push toward $3,550, followed by the $3,750 resistance. However, this recovery would need to be backed by strong trading volume and improving risk sentiment in the broader crypto market.
Broader Market Weakness Weighs on Ethereum
Ethereum’s decline doesn’t exist in isolation. The broader crypto market has been under sustained pressure due to falling liquidity, weakening ETF inflows, and persistent selling from long-term holders. Bitcoin’s retreat below $110,000 has amplified bearish sentiment, dragging altcoins lower across the board.
Moreover, Ethereum’s on-chain activity has also shown signs of cooling. Data from Sentora and CryptoQuant reveals a decline in active addresses and DeFi participation, indicating that traders are adopting a more defensive stance amid market uncertainty.
Analysts Remain Divided on ETH’s Near-Term Outlook
Market analysts are divided on whether Ethereum’s latest move is a short-term correction or the start of a deeper retracement. Crypto analyst Aayush Jindal noted that Ethereum’s inability to hold above $3,500 reflects fading bullish momentum. “If ETH fails to reclaim the $3,500 resistance soon, the next major support lies near $3,200. Below that, the structure could quickly deteriorate toward $3,000,” he said.
Others, however, believe the correction could be a healthy reset after months of rallying. Some traders see the $3,000–$3,200 range as a “buy zone,” arguing that long-term fundamentals — such as Ethereum’s staking growth and institutional adoption — remain strong.
Post Views: 102