Ethereum (ETH), the second-largest cryptocurrency by market cap, has dipped below the critical $3,450 level, raising concerns about weakening short-term momentum. After showing strength earlier this week, the sudden drop signals a temporary cooling in the broader crypto market.
ETH Breaks Support as Sellers Gain Control
The breach of the $3,450 support zone suggests increasing selling pressure. In recent sessions, ETH failed to hold above its short-term moving averages, resulting in a shift toward a more neutral-to-bearish stance among traders.
Ethereum’s dip below $3,450 marks a 4% pullback from this week’s highs, reflecting fading bullish momentum amid broader market hesitation.
Technical Outlook: Next Support Levels in Focus
With $3,450 now acting as resistance, analysts are eyeing the next key support zone near $3,380–$3,400. If that level fails, a drop toward $3,300 may come into play. On the upside, bulls must reclaim $3,470–$3,500 to regain control.
A failure to hold above $3,400 could open the door for deeper corrections, especially if Bitcoin remains under $113K.
Market Sentiment and On-Chain Activity
Despite the dip, Ethereum’s long-term fundamentals remain intact. On-chain data still shows strong wallet activity and relatively low exchange inflows, suggesting that most ETH holders are not panic selling.
Whale accumulation patterns have remained steady, indicating long-term confidence even as prices slide in the short term.
Macro Factors at Play
The recent softness in Ethereum aligns with a cautious macro backdrop. Stronger U.S. dollar strength, uncertainty around global regulations, and cooling enthusiasm in risk-on assets are contributing factors in this pullback.
Market-wide caution has led traders to reduce exposure, especially after a multi-week rally across crypto assets.
Conclusion:
Ethereum’s move below $3,450 is a caution flag, but not a panic signal. If key support zones hold, the current drop may simply be part of a broader consolidation phase. Long-term investors are still holding steady, while short-term traders remain on alert for potential re-entry zones.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.