Current Market Sentiment and Technical Indicators
Ethereum (ETH) continues to face downward pressure, trading below a critical micro resistance level, as highlighted by a recent analysis from More Crypto Online on X. The 1-hour chart reveals a consolidation phase beneath the upper resistance zone, marked around $3,800, with the price struggling to break through.
The technical breakdown suggests that a meaningful low has not yet formed, with bearish sentiment reinforced by a descending trendline and declining moving averages. Analysts point to a potential drop toward the $3,200-$3,300 range if the current support fails, aligning with recent market trends showing a 30% decline from Ethereum’s yearly high of $4,946. The chart indicates a bearish wedge pattern, with the price testing the 50.00% Fibonacci retracement level at $3,329.15.
Potential Downside Targets and Influencing Factors
This level has historically acted as a pivot, and a break below could accelerate selling pressure, possibly targeting $2,800. Meanwhile, massive outflows from Ethereum ETFs—exceeding $1.4 billion in recent weeks—coupled with daily sales of 45,000 ETH by long-term holders, are fueling this tense standoff. However, upcoming catalysts like the Fusaka network upgrade and potential Federal Reserve rate cuts could spark a rebound if bullish momentum returns.
Trader Outlook and Key Levels to Watch
Traders remain divided, with some anticipating further declines, while others see a bounce as plausible if support holds. The market’s next move hinges on whether Ethereum can reclaim the $3,600 level, a psychological and technical threshold. For now, caution is advised, with short-term traders advised to monitor volume and key support zones closely.