The global second-largest cryptocurrency, Ethereum (ETH), faces intense selling pressure just one day after the successful implementation of the Dencun upgrade. At press time, ETH prices dropped 7.8% to $3,669, with its market capitalization dipping slightly below $450 billion. Daily trading volume surged 45% to $32.29 billion.
Critical Ethereum (ETH) Price Levels to Monitor
Ethereum encountered resistance at the $4,000 level, initiating a downward correction that mirrors Bitcoin's trajectory. The breach of key support levels at $3,920 and $3,850 signals a short-term bearish trend.
ETH briefly fell below the $3,680 support zone, hitting a low of $3,625 before consolidating losses. A prominent bearish trendline is forming with resistance near $3,850—coinciding with the 50% Fibonacci retracement level from the recent swing high of $4,083 to the $3,625 low.
Bullish Reversal Scenario
- A breakout above $3,880 could reignite bullish momentum, targeting $4,000.
- Sustained buying pressure may propel ETH toward previous highs.
Bearish Continuation Scenario
- Failure to overcome $3,850 resistance may trigger further declines.
- Immediate support lies at $3,680, followed by a major zone near $3,600.
- A decisive drop below $3,500 could extend losses to $3,350.
👉 Expert Insights: ETH's Next Major Move
Renowned crypto analyst CrediBULL Crypto notes that ETH’s $3,600–$3,700 range may attract significant buying interest in the near term.
Security Alert: Lazarus Group Activity
Blockchain analytics firm Elliptic identified a $12 million ETH transfer linked to North Korea’s Lazarus Group, facilitated via sanctioned mixer Tornado Cash. The funds trace back to a November 2023 hack targeting HTX and Heco Bridge, causing ~$100 million in losses.
ETH Gas Fees Drop Below $10
Santiment reports that Ethereum’s current market dynamics differ markedly from late 2021, with network fees now 6x lower due to post-Merge optimizations. Average gas fees stand at $9.35, enhancing transaction affordability.
Key Takeaways
- Resistance Levels: $3,850, $3,880, $4,000
- Support Zones: $3,680, $3,600, $3,500
- Market Sentiment: Cautious amid high volatility
FAQ
Q: What caused Ethereum’s sudden price drop?
A: Profit-taking after the Dencun upgrade and broader market corrections contributed to the 7.8% decline.
Q: Is $3,600 a reliable support level for ETH?
A: Analysts suggest strong buy interest in this range, but a break below $3,500 may invalidate the support.
Q: How low could ETH price go if bearish trends persist?
A: Next critical supports are $3,350 and $3,000, though macroeconomic factors will play a role.
👉 Strategic Trading Tips for ETH Volatility
Data sources: Santiment, Elliptic, FX168. This article is for informational purposes only and does not constitute financial advice.
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