
Ethereum's price may fall below $3,000 if it doesn't regain crucial support.
Ethereum's price has seen a considerable drop, falling below $4,000, prompting market caution. Technical analysis indicates a break below the ascending channel's midline and the 100-day moving average. The price briefly touched the 0.5 Fibonacci retracement level, but has since bounced slightly. A return above $4,000 is needed for a short-term recovery. Ethereum's Relative Strength Index (RSI) signals weak momentum, currently below 40. The 4-hour chart shows temporary support around the $3,400 demand zone, with an oversold RSI. Resistance remains significant at $3,800, and rejection could lead to retesting $3,400. A breakout could see a return to $4,200. Negative funding rates across exchanges point to widespread fear and liquidations, a situation not seen since late 2024. Historically, such conditions have preceded short-term recoveries. This negative sentiment might be a temporary flush for the futures market. Failure to regain the ascending channel could lead to a drop below $3,000, potentially signaling the end of the bull market. However, stabilization and spot-driven activity could still facilitate a sustainable rally. The market is currently in a precarious stage, requiring careful observation.