Ethereum (ETH) has breached a major support level, falling to a new monthly low of $3,350. This breakdown signals a potential shift in market momentum, triggering concern among traders and investors alike.
Ethereum Price Action: Support Level Broken
Over the past week, Ethereum has been hovering near critical price levels. On August 2, ETH broke below its key support at $3,500, a level that had held for several weeks. The breach confirms increased selling pressure, pushing the price down to $3,350—its lowest point since mid-June.
This move marks a technical breakdown, with downside momentum accelerating across multiple timeframes.
What’s Driving the Sell-Off?
Several factors contributed to Ethereum’s price weakness:
- Strengthening U.S. dollar: As the DXY Index crossed 100, risk assets like ETH and BTC faced added pressure.
- Global macro concerns: Market sentiment turned cautious amid new tariffs and slowing U.S. economic data.
- Technical rejection at resistance: ETH failed to reclaim the $3,700 zone, reinforcing bearish control.
Key Technical Levels to Watch
- Next major support: $3,200
- Immediate resistance: $3,500 (previous support now acting as resistance)
- Bearish target zone: $3,000–$3,100 if selling continues
Market Outlook
The breakdown below $3,500 has invalidated short-term bullish setups and may lead to further downside unless buying volume increases sharply. Traders will watch for stabilization above $3,300 before considering recovery positions.
A daily close below $3,350 would reinforce bearish sentiment, potentially triggering further liquidations.
Conclusion
Ethereum’s drop to $3,350 is a clear technical warning. As macro headwinds grow and momentum weakens, ETH may remain under pressure in the near term. Investors should monitor volume and support levels closely to gauge when buyers may return.
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.