Ethereum (ETH) to Lose $3,000? Its Coming

ETH/USDT Chart by TradingView

From a technical standpoint, Ethereum is clearly running out of steam. Having failed to break above $4,200, the asset experienced a significant reversal and is currently trading close to $3,730, falling below the 100-day moving average for the first time in months. At the 200-day MA, which has held so far at $3,500, is the next significant dynamic support. If that fails, ETH might go into a protracted downward trend, with $3,000 being the next reasonable target.

Ethereums brief reversal

Strong bearish momentum and little buying interest are evident in the RSIs decline below 40. This trend is further supported by volume; the most recent candles exhibit strong sell-side dominance, indicating that institutions and whales may be reducing their risk in anticipation of future volatility. This change in sentiment was brought on by Fridays crash.

The rejection of Bitcoin at $120,000 set off a chain reaction, causing tremors in the altcoin market. Ethereums leveraged long positions were especially concentrated, which exacerbated the collapse, according to liquidation data. The market tone is still defensive, even though ETH might experience brief respite above $3,500.

Ethereum is likely to break through $3,000, a level that could redefine the midterm trend unless buying strength quickly returns. In short, the recent meltdown may be more than a temporary correction, and Ethereums bull run has stalled. The decline toward $3,000 — or even lower — appears inevitable if sentiment does not change soon.