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Ethereum News Update: Ethereum Faces $3,000 Support Test—Will It Hold Steady or Keep Falling?

Ethereum News Update: Ethereum Faces $3,000 Support Test—Will It Hold Steady or Keep Falling?

Bitget-RWA2025/11/18 16:32
By:Bitget-RWA

- Ethereum tests $3,000–$3,050 support zone amid heightened selling pressure, with technical indicators signaling potential inflection points. - A positive RSI divergence and clustered support levels suggest slowing bearish momentum, though 200-day MA dominance hints at deeper declines. - Onchain data reveals retail-driven liquidations below $3,000, historically preceding institutional accumulation phases and temporary rebounds. - A sustained rebound above $3,350 could trigger a corrective rally, while a c

Ethereum's recent price movement has become more volatile as it approaches significant support zones under mounting selling pressure. Market observers are watching closely to see if buyers can halt the decline or if the asset will continue falling toward broader demand areas. The $3,000–$3,050 range, which has previously sparked upward moves, is now a central focus, with both technical and onchain signals

in the short term.

Looking at the daily timeframe,

remains locked in a downward pattern, nearing the $3,000–$3,050 demand area that supported a rally last July and August. This region aligns with the lower edge of a falling wedge, rather than the start of new trends. Failing to recover the 100-day moving average near $3,800 has led to continued selling, and the 200-day moving average is now positioned above the price for the first time since early summer. Although momentum has weakened in the medium term, the convergence of support near $3,000 suggests that sellers may find it difficult to maintain control if the price stabilizes .

On the 4-hour chart, short-term price action shows Ethereum trading within a downward channel, with reduced volatility and long lower wicks hinting at buying interest near important support. The $3,000–$3,100 area has been tested multiple times, creating a reaction zone where algorithmic trades are often concentrated. If the price can break above the $3,250–$3,330 imbalance area, a corrective move higher could follow, but the overall bearish setup remains until Ethereum can reclaim the channel midpoint around $3,350

.

Downward momentum is still present,

, with Ethereum stuck in a compressed downtrend and repeatedly failing to break above lower-high resistance. The $3,000–$3,100 support zone has held, helped by a positive RSI divergence that points to weakening bearish strength. However, unless the price recovers above $3,450–$3,550, there remains a risk of dropping toward the $2,600 macro demand area.

Onchain metrics highlight a change in trading behavior, with the recent slide from $4,100 to $3,000 mainly driven by smaller retail trades rather than large institutional moves. This pattern is similar to previous capitulation periods, where retail liquidations paved the way for accumulation by bigger players. Futures liquidation heatmaps reveal a dense cluster of long positions near $3,000,

as excessive leverage is cleared.

Ethereum News Update: Ethereum Faces $3,000 Support Test—Will It Hold Steady or Keep Falling? image 0
The liquidation heatmap also points to a significant imbalance between $3,600 and $3,900, an area that could attract price action if buyers manage to push above $3,450. Below $3,000, liquidity becomes sparse, implying that any further drop could be rapid but brief, rather than ongoing selling pressure.

At present, Ethereum's direction depends on its ability to hold the $3,000–$3,100 support. A daily close under $2,950 would break wedge support and likely speed up a move toward $2,600–$2,700, while a sustained recovery above $3,350 could set off a corrective bounce. With onchain data hinting at possible capitulation and technical levels tightly packed, the next few days will be crucial in deciding whether this marks a cyclical bottom or the continuation of the larger downtrend.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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