Ethereum News Update: Ethereum Price Drops to Critical $3,550 Support Level

Ethereum has dropped below $3,800 as bearish momentum dominates the market, drawing attention to important technical markers as traders evaluate the risk of further losses. The cryptocurrency was unable to surpass the $3,920 resistance, leading to renewed selling pressure that drove ETH beneath vital support levels, such as the 100-hour Simple Moving Average (SMA) and an ascending channel with support at $3,840, as highlighted in

. Experts caution that if fails to recover these levels, sellers may next target the $3,550 support, a significant area that has previously sparked price rebounds, according to a .

The recent slip under $3,800 has heightened negative sentiment, with technical signals confirming the downward trend. The MACD for ETH/USD is strengthening in bearish territory, and the Relative Strength Index (RSI) remains below the midpoint of 50, indicating ongoing selling activity, according to

. Blockchain data also shows that short-term investors are exiting their positions, while long-term holders continue to stay invested, reflecting continued faith in Ethereum’s long-term prospects, as reported by The Currency Analytics.

Analysts point to Fibonacci retracement levels as important reference points. Ethereum has slipped below the 61.8% retracement of its recent rise from $3,678 to $3,916, confirming the loss of short-term bullish strength. Should the price fall under the 76.4% Fib level at $3,720, deeper declines could follow, especially if the broader market remains weak, The Currency Analytics notes. Immediate resistance is found around $3,840 and $3,860, and a clear move above $3,920 could pave the way for a challenge of the $4,000 psychological level, according to TradingView analysis.

The bearish outlook depends on Ethereum’s ability to maintain key support areas. If $3,680 does not hold, the next important levels are $3,650, then $3,550 and $3,500, as mentioned in the Holder coverage. A drop below $3,500 could send the price toward $3,450 or even $3,300, where stronger buying interest may appear, The Currency Analytics suggests. On the other hand, a sustained move above $3,920 could revive bullish momentum, with possible targets at $4,000 and higher, as discussed in the TradingView analysis.

Wider market forces are also shaping Ethereum’s path. The coin’s price action remains closely linked to

, which has struggled to stay above $110,000. Uncertainty regarding U.S. Federal Reserve decisions and government budget talks has further reduced risk appetite, putting pressure on digital assets, according to The Currency Analytics. Analysts believe that for Ethereum to reverse its downtrend, there would need to be a combination of better macroeconomic conditions, increased buying, and positive news in the DeFi or ETF sectors, The Currency Analytics adds.

At present, traders should keep a close eye on the $3,840 resistance and $3,680 support. A strong move above $3,920 could signal the start of a new rally, but until that happens, caution is advised as the market reacts to changing economic developments, according to the Holder coverage.