Ethereum faced a significant drop of 12.90% today, settling at $3,785.93 as technical indicators raised red flags across the market. The sell-off drove ETH beneath key support levels, igniting a wave of liquidations and algorithmic selling that escalated during the trading session. The ETH price breakdown commenced when the token was unable to maintain its position above the 20-day simple moving average at $4,246.57, currently trading 10.8% beneath this crucial technical threshold. The decline intensified as Ethereum fell below the critical $4,000 psychological support level, with the token eventually hitting lows around $3,435.00 during the trading session.
Trading volume skyrocketed to $6.87 billion on Binance spot markets, highlighting substantial involvement from both institutional and retail investors in the sell-off. The notable price movement marks one of the most substantial single-day drops for ETH in recent weeks, as the token has decreased from session highs of $4,390.46 to its current levels. The technical landscape for Ethereum has swiftly declined, as the Relative Strength Index has fallen to 34.8, nearing oversold conditions but not yet indicating an imminent turnaround. The MACD indicator has shifted firmly into bearish territory, with a histogram reading of -51.26, signaling a clear momentum shift to the downside.
ETH is currently trading at $4,377.82, which is 13.5% below its 50-day moving average, a significant level that has offered robust support during recent market corrections. Despite today’s volatility, the token holds a 21.9% premium over its 200-day moving average, currently at $3,105.75, indicating that the longer-term uptrend is still in place. Key resistance levels have emerged at $4,755.00 and $4,956.78, with immediate support identified at the session low of $3,435.00. The pivot point at $3,870.46 stands as a critical marker for assessing the short-term trajectory.
All eyes are on whether ETH can bounce back to the $4,000 mark and maintain stability above the crucial $3,870 pivot point. A sustained break below $3,435 could pave the way for additional declines toward the $3,100 area, where the 200-day moving average may offer potential support. Recovery scenarios hinge on ETH reclaiming momentum above $4,200, a move that must align with diminished selling pressure and enhanced risk sentiment. The $4,755 resistance level stands as a crucial barrier for any prospective bounce effort.