Ethereum Risks Breakdown to $3,378 as Bears Threaten $3,800 Support

With Ethereum prices suddenly dropping below $3,900, bearish sentiment targets a breakdown under the $3,700 mark.

Unable to maintain levels above $4,000, Ethereum has taken a bearish turn as Bitcoin falls below $104k. Breaking below the $3,900 threshold, Ethereum has formed a second consecutive bearish candle, signaling the potential for a significant correction ahead.

As the price approaches the support trendline, bullish dominance at lower levels is at risk. Could this correction lead to a major crash for Ethereum?

Ethereum Price Analysis

After a double-top reversal at the key $4,000 resistance level, Ethereum’s price has dropped by 4.41% over the past 24 hours. The bearish retracement is nearing a local support trendline.

Ethereum Price chart

The double-top reversal suggests a potential decline toward the $3,600 mark. A fall to this level will materialize if Ethereum breaks below the local support, which could trigger increased selling pressure.

Currently, Ethereum is trading at $3,837, reflecting a 1.43% intraday drop from the opening price of $3,837. Compared to the 52-week high of $4,106 reached during the recent recovery, Ethereum is down by 6.5%.

This decline highlights the significant supply pressure at higher levels, with Ethereum now at a critical juncture. The price is set to test the 20-day EMA in confluence with the local support trendline.

Amid this correction, the MACD and signal lines continue to show a downward trend, confirming the strong bearish momentum.

Ethereum ETFs Record $144M in Inflows

Despite the ongoing bearish trend in Ethereum prices, the U.S. spot Ethereum ETF has recorded a daily net inflow of $144.7 million. This includes $134.8 million in Ethereum purchased by BlackRock, followed by $3.9 million bought by Fidelity.

This demonstrates that, despite short-term volatility, institutional support for Ethereum remains robust.

Ethereum Price Targets

A breakdown of key support levels, including the 20-day EMA and the ascending trendline, could lead to an extended correction. In this scenario, the 61.80% Fibonacci level at $3,378 would provide strong support.

On the other hand, if Ethereum experiences a bullish rebound, it may challenge the 50% Fibonacci level for a potential breakout. In this case, the breakout rally could target $4,598 or a market capitalization of $1.5 trillion for Ethereum.

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