Ethereum Price Drops Below $3,400: Will Support at $3,035 Hold?

Will Ethereum (ETH) price continue its free fall and test the $3,000 mark as Bitcoin (BTC) collapses below $96,000?

Ethereum fell below the psychological support level of $3,500, as Bitcoin fell below the $96,000 level. With Bitcoin’s market capitalization falling below $2 trillion, Ethereum maintains its $400 billion valuation.

In parallel, Ethereum is holding on to the $3,400 support level as the cryptocurrency market turns red. Will sellers trigger a breakout of this level and push for a retest of $3,000?

Ethereum price analysis

Over the past seven days, the price of Ethereum has fallen by 12.44%, reflecting an intense market correction. On the daily chart, the Ethereum price trend shows three consecutive bearish candles.

The downtrend began after Ethereum faced rejection at the $4,100 level. With a triple black crow pattern, Ethereum price fell below the 50-day moving average line.

Moreover, the price reached the 78.60% Fibonacci retracement level at $3,553. Continuing the downtrend, Ethereum is now testing the $3,400 level, with the current market price at $3,404.

As prices continue to decline, the daily RSI has fallen below the halfway mark and is slowly approaching the oversold border. The momentum indicator shows an increase in selling pressure.

The Ethereum ETF turns red

Amid a downward price trend, Ethereum ETFs Experienced A massive inflow of $60.47 million. Leading the bearish pack, Grayscale dumped $58.13 million worth of Ethereum. This surge in selling pressure brought an end to the uptrend in the Ethereum ETF market.

Whale activity is on the rise

As Ethereum price volatility increases, Ethereum tokens are sold at discounted prices. Taking advantage of this, fund Donald Trump’s global freedom He spent $2.5 million to buy 722 ETH tokens.

However, despite Trump’s bullish outlook, the market has seen the whales turn bearish. Due to the recent drop in prices, whales are forced to sell to pay off debts.

One whale recently Deposited 22,746 ETH tokens worth $77.7 million were deposited on Binance, while another person deposited 31,968 ETH tokens worth $122 million over the past two days.

Furthermore, another whale deposited 49,910 ETH tokens worth $170 million via Binance and will convert them into stablecoins worth $137.8 million.

Will Ethereum price drop to $3,000?

In conclusion, with the broader cryptocurrency market turning bearish, Ethereum is facing increasing selling pressure. The downtrend is likely to gain momentum with institutional support and retail demand fading.

Based on Fibonacci levels and technical indicators, the 200 EMA line at $3,035 remains a crucial psychological support level. Moreover, the 50% Fibonacci level at $2,942 may be a potential retracement zone. Ethereum price could challenge the 78.60% Fibonacci level at $3,530 if the broader market rebounds.