Ethereum is facing renewed downside pressure after shedding more than 5% over the past day, triggering concerns that a deeper correction may be forming. The broader market downturn has weighed heavily on major cryptocurrencies, and Ethereum is showing signs of additional weakness as it struggles to regain key price levels.
The asset’s inability to hold above $3,350 has further reinforced bearish sentiment, suggesting that buyers may remain cautious until stronger signals of recovery emerge.
Ethereum Faces Strong Downward Pressure
Ethereum attempted to stabilize above $3,500 earlier this week, but its inability to sustain momentum triggered a wave of selling. The rejection around $3,550 set the stage for a sharper decline, mirroring the broader weakness seen across Bitcoin and other major digital assets.
Once ETH broke below $3,500, sellers intensified their activity, driving the price under $3,350 and eventually testing the $3,250 and $3,200 regions. The downward move extended further, pushing the price to a new local low around $3,153. This level now stands as a critical short-term support zone that traders are watching closely.
The decline also pushed Ethereum under the 100-hourly Simple Moving Average, reinforcing the short-term bearish trend and signaling that momentum remains tilted in favor of sellers.
Price Attempts Modest Recovery but Faces Multiple Barriers
Following the drop to $3,153, Ethereum began a mild recovery attempt. The rebound took ETH toward the 23.6% Fibonacci retracement level of the downswing from the $3,561 high to the $3,153 low. However, the price continues to trade well below $3,350 and remains capped under significant resistance zones.
The next barrier sits around $3,300, a level that previously acted as support but has now turned into near-term resistance. Even if Ethereum manages to climb above $3,300, it faces additional hurdles at $3,350, which aligns with the 50% Fibonacci retracement area.
A more substantial obstacle lies at $3,500, where a well-defined bearish trend line has formed on the ETH/USD hourly chart. This trend line has consistently prevented the asset from reclaiming higher ground, making it a critical area for assessing any potential shift in momentum.
If Ethereum can successfully move above $3,500 and maintain strength, the next targets sit at $3,650 and $3,800. These levels could mark the beginning of a stronger upward phase. However, the current market environment suggests that achieving such a move may require a broader improvement in sentiment.
Indicators Point to Fragile Market Confidence
Recent market behavior shows that investors remain cautious following several failed recovery attempts. Ethereum’s inability to hold above prior support regions has raised questions about whether bulls currently have enough strength to defend the asset against further declines.
Technical indicators also reflect weakening confidence. Trading volumes have shifted toward selling activity, and Ethereum’s position below major moving averages highlights the ongoing struggle to regain positive momentum.
Market volatility has increased as well, with short-term traders responding quickly to price movements. Until ETH breaks key resistance levels, sentiment is likely to remain bearish.
Potential Scenarios: Rebound or Further Decline?
In the near term, Ethereum’s price action will depend heavily on its ability to hold above the $3,150 support. If this floor remains intact, ETH may attempt another move toward $3,300 and possibly $3,350. These areas will determine whether buyers can regain control or whether sellers remain firmly positioned.
However, if Ethereum fails to stay above $3,150, the asset could enter another phase of losses. A breakdown below this level may push ETH toward $3,050, a region that has historically acted as a stabilizing zone during broader market corrections. Any sustained drop under $3,050 could expose the price to deeper targets at $3,000 and potentially $2,880.
A move into the $2,850–$2,880 range would represent a significant retracement from recent highs and may only occur if overall market sentiment deteriorates further.
What to Expect Moving Forward
Ethereum now sits at a critical juncture. While short-term weakness remains evident, markets have also shown that strong rebounds can occur when sentiment turns. Traders will be closely watching structural support zones, moving averages, and momentum indicators to determine whether the current trend is part of a deeper correction or merely a temporary pullback.
For now, Ethereum needs stronger buying interest and improved market stability to break through key resistance levels and regain upward traction. Until then, volatility is expected to continue, and caution may remain the dominant strategy among traders.
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