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06/01/26
22
Ethereum Falls Below $3,500 Amid Short-Term Bearish Momentum
Ethereum has recently experienced a notable decline, falling below the key psychological threshold of $3,500. The digital asset’s corrective move follows a period of volatility and failed attempts to sustain positive momentum above this level. Currently, Ethereum is trading below $3,500 and the 100-hour Simple Moving Average, indicating continued bearish sentiment in the short-term trend.
The recent downtrend was accentuated after Ethereum crossed below $3,550, with prices dropping to as low as approximately $3,058. During this decline, the token breached several support levels, including $3,450 and $3,350, fueling further momentum toward lower prices. The downside move accelerated beneath $3,250, prompting a brief recovery rally from the low point. The bounce exceeded the 23.6% Fibonacci retracement of the previous downward move from $3,920 to $3,058, but resistance remained prominent at levels just below $3,500.
On the hourly chart, Ethereum managed to break above a bearish trend line with a resistance level at roughly $3,410, offering some optimism for short-term stability. Nonetheless, persistent selling pressure capped the recovery, with key resistance zones identified near $3,450 and $3,480. The immediate support levels are established at $3,320 and $3,260. A breakdown below these could see the price test further support zones around $3,150 and potentially as low as $3,020 or even $3,000 if the bearish momentum persists.
From a technical perspective, the MACD indicator shows waning bullish momentum, while the Relative Strength Index is slightly above the neutral 50 level, suggesting neither oversold nor overbought conditions currently dominate the market. Overall, the Ethereum outlook remains fragile; a decisive move above $3,500 would be necessary to reestablish a bullish trend, whereas failure to clear resistance levels could lead to another decline toward lower support zones in the near future.
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