Ethereum Price Analysis: Will $3K Hold as ETH’s Bearish Momentum Increases?

Ethereum has fallen below the $3,300 mark, indicating continued selling pressure in this zone. Although the bears are not yet showing strong momentum, the fact that the price fell after a major liquidation, which has already eliminated many long positions with excessive debt, increases the risk of a further decline. This suggests that spot sellers may now be in control, opening the door for a deeper short-term correction.

Technical analysis

By Shayan

The daily chart

On the daily chart, ETH fell below the channel and has fallen slightly below the 200-day moving average. It is also currently below the $3,300 demand zone. This is a key level that Ethereum is losing right now, as the 200-day moving average is known as one of the most critical indicators for determining whether the overall market phase is bullish or bearish.

The RSI also remains weak at 32, indicating that the market is not yet on the path to recovery. To give buyers back control, ETH needs to break above $3,500 and turn that region and the 200-day moving average into support. Until then, the price is in a vulnerable zone, which could push the price towards the $3,000 support level in the coming days.

The 4-hour chart

The 4-hour chart shows a quick rejection from the lower limit of the broken channel and the previous support zone, around $3,400. The price is currently hovering around the level and has yet to form a convincing recovery or create a higher low.

The RSI is also stabilizing below the 50% level as the momentum is clearly bearish. With ETH breaking $3,300 down again, the next move towards the $3,000 zone and lower could come soon.

Sentiment analysis

Long liquidations

Sentimentally, liquidations have wiped out a large portion of the late long entries, leaving a cleaner slate for price stabilization. The chart shows a large liquidation spike just before the small upswing, confirming the shakeout.

With many positions washed out and the RSI approaching oversold territory on multiple time frames, the market could soon be due for a reset. Still, traders are likely to remain cautious and wait for clearer strength and a break above $3,500 before loading back into long positions.

On the other hand, a drop to the $3,000 level could trigger a new liquidation cascade and lead to an even more significant liquidation event, which could result in another flash crash in the coming weeks.