- ETH dropped by 3.96% to $3,600 after hitting resistance at $3,750, with rising wedge and RSI divergence suggesting bearish risk.
- Key support at $3,500 must hold to avoid deeper drops toward $3,200 or $2,233; $3,800 remains key for bullish continuation.
- Analyst warns of rejection without a $3,800 breakout, with wedge structure and liquidity pools hinting at downside potential.
Ethereum recent rally appears to have hit resistance, leading to a sharp daily pullback that is now drawing renewed bearish sentiment. The price of ETH, after a steep climb, dropped by around 3.96% to trade at $3,600.29.
This decline comes just after reaching the $3,748–$3,766 range, a zone marked for partial profit taking. The red candle forming near a psychological resistance at $4,000 has prompted speculators to reassess short term positioning. Selling pressure intensified around $3,750, with a “Selling 10%” zone indicated just below the next key level.
Rising Wedge Pattern Shows Reversal Risk
The recent uptrend formed a rising wedge pattern, typically associated with bearish reversals. After touching $3,715, ETH struggled to push through the $3,800 resistance. Notably, a red supply zone between $3,700 and $3,800 has acted as a ceiling, preventing further upside. The lower highs now forming suggest waning bullish strength.
Adding to the caution, the RSI showed a bearish divergence, price made higher highs while RSI formed lower highs. This weakening momentum is further reflected by a projected 12.83% drop, potentially sending ETH to $3,186.61.
A major liquidity pool on the long side could be swept, with selling pressure driving prices lower into deeper support zones.
$3,500 Becomes Crucial Line for Near Term Bulls
The zone between $2,400 and $2,600 has already been reclaimed and remains confirmed support. Previously, a breakout above descending resistance in May started this bullish wave. ETH then climbed past $2,800, converting old resistance into support.
Now, the $3,500 mark holds increased importance. If buyers defend this level, a return to the $4,000 target remains viable. However, if the price falls below $3,500, the next targets lie at $3,200, $2,630.16, and possibly down to $2,233.80.
Analyst Sees Rejection Without $3,800 Break
According to Michael van de Poppe, ETH recently created a bearish divergence after a $1,200 rally. He stated that unless ETH breaks $3,800, a drop toward $3,400 is likely. The wedge structure supports this view, as the price has started creating lower highs since the $3,715 peak.
Strong resistance remains near $3,800. If bulls cannot flip this into support, downside risk intensifies. Liquidity below makes it an attractive zone for further price action.
ETH has shown strong gains but now faces short-term technical hurdles. Price must break above $3,800 to maintain momentum. A failure to hold $3,500 can lead to deeper pullbacks into long term demand zones.
