Ethereum News Today: Ethereum's $3,150 Support: Last Bastion Before Deeper Decline?

Ethereum's price fell 10% in recent trading, testing critical support levels as market participants weigh the likelihood of a rebound. The cryptocurrency, which has been volatile amid mixed institutional and retail demand, now trades near $3,150-a level analysts suggest could act as a short-term floor. However, sustained weakness below $3,300 could trigger further declines, according to technical indicators and market data.

The sell-off accelerated after Ethereum broke below the $3,590 support level, a key technical threshold that has historically signaled bearish momentum. Traders are now monitoring the $3,510–$3,530 cluster as the next immediate support zone, with a failure to hold there potentially extending the downturn toward $3,480–$3,500. Volume analysis underscores the severity of the decline, with breakdown volume surging 138% above the 24-hour average, suggesting institutional participation in the selloff.

Ethereum's struggles are part of a broader crypto market downturn. Bitcoin, the largest cryptocurrency, also faced a $97,000 trading range amid a 5.4% drop in total market capitalization to $3.36 trillion over the past 24 hours. Institutional outflows from Ethereum and Bitcoin ETFs have worsened sentiment, with U.S.-listed ETH ETFs recording $260 million in outflows on Thursday-the largest since November 6. Grayscale's GBTC and BlackRock's IBIT led the exodus, signaling waning confidence in the asset class among major investors.

Technical indicators paint a cautiously bearish picture. Ethereum's price has repeatedly failed to break above the 200-day Exponential Moving Average (EMA), a critical hurdle for a sustained recovery. The Relative Strength Index (RSI) remains in a downtrend, while the Stochastic Oscillator nears oversold territory, suggesting potential for a short-term bounce but not a reversal of the broader decline. Liquidations have also spiked, with $206.5 million in futures positions wiped out over the past day, led by $155.3 million in long liquidations.

Despite the near-term challenges, some analysts argue that Ethereum's historical support at $3,150 could stabilize the market. "Buyers have often stepped in near this level in the past," noted a crypto strategist, though he cautioned that a breakdown below $3,100 could push the price toward $2,850. A strong rebound above $3,700, however, might reignite bullish momentum toward $3,850–$4,000.

The broader market environment remains fragile, with low institutional and retail demand exacerbating price pressure. XRP, another major altcoin, also languishes below $2.30, while Bitcoin ETF outflows highlight a flight to liquidity. For Ethereum, the coming days will likely hinge on whether $3,150 holds and whether ETF flows stabilize-a scenario that could determine the path of the next major price movement.