- Ethereum is back at the $3,400 line that triggered a sharp 10% drop in July, testing trader sentiment at this key level.
- ETH still holds its bullish market structure, trading above the SuperTrend support with strong buyer defense around the $3,368–$3,400 zone.
- If $3,400 holds firm, bulls could regain momentum and target a move toward $4,000 as part of the ongoing breakout structure.
Ethereum has retraced to a key support area around $3,600, a level that previously triggered a 10% decline in July.
Price Returns to Crucial Support Level
Ethereum (ETH) is trading at $3,405 as of writing, registering a 2.51% daily decline as of August 1, 2025. The price movement brings ETH back to a previously contested level, where sellers dominated in July. The current drop follows a sharp pullback from the recent rally, which pushed ETH close to $3,900.
IncomeSharks shared on X, “$ETH—Back to the line that saw a 10% last time. We could go all the way down to $3,400 and still have a bullish structure.” The line has turned into a psychological battlefield for traders, with a change of sentiment leading to renewed volatility.
Bullish Market Structure Still Intact
Despite the current pullback, the broader market structure for ETH remains upward. The daily chart confirms the pattern of higher highs and higher lows, which is characteristic of a bullish trend. ETH’s price also remains above the SuperTrend support around $3,368, which continues to flash green.
Crucially, the $2,800 mark that was resistance is now a consistent support base. Following ETH’s breakout above this zone in early July, momentum took it all the way back to nearly $4,000. Now that it is correcting, it appears orderly in this context, suggesting a retracement compared to a reversal.
Scenarios at $3,600–$3,400 Range
The $3,600–$3,400 zone now serves as a pivotal region. If support holds, a bounce toward the $4,000 target becomes increasingly likely. The structure above the prior breakout level may form a bullish continuation pattern.
On the other hand, a decisive break below $3,368–$3,300 could signal weakness in the prevailing trend. So far, ETH has not closed below the SuperTrend threshold, indicating bulls still maintain control. Traders are closely watching this area to assess whether ETH will maintain its structure or shift toward deeper corrections.
