Ethereum News Today: Ethereum's $3K Support Test: Bears Push to $2.5K, Bulls Battle for Recovery

Ethereum's price has plunged below $3,000 for the first time since July 2024, marking a significant milestone in its ongoing bearish trend. The cryptocurrency fell to as low as $2,870, with spot ETFs tied to Ethereum experiencing a $74.22 million net outflow over six consecutive days. This exodus of capital underscores growing investor skepticism, particularly as analysts now deem a $16,000 price target by 2025 improbable.

Technical indicators reinforce the bleak outlook. Ethereum's 14-day Relative Strength Index (RSI) stands at 33.8, signaling oversold conditions, while moving averages for ETH/USD show a "Strong Sell" signal, with 12 sell indicators and zero buys. On the hourly chart, the price has breached key Fibonacci support levels and the 200-day simple moving average, triggering automated sell-offs. Market makers, already strained by a $20 billion liquidation event in October, are further exacerbating the downturn by offloading assets to meet obligations.

The broader market context compounds Ethereum's struggles. Bitcoin's dominance has surged to 58.1%, siphoning capital away from altcoins like ETH. This trend mirrors historical patterns during corrections, where investors flock to Bitcoin as a perceived safe haven. Meanwhile, Ethereum's MVRV ratio (market value vs. realized value) of 0.89 indicates widespread selling by loss-making holders - a classic capitulation signal.

Price action suggests further volatility. Ethereum is currently testing support at $2,770, with a break below this level potentially targeting $2,500. Conversely, a recovery above $3,050 could reignite bullish momentum, though analysts caution that sustained gains will require stability in Bitcoin and improved liquidity among market makers. The Fear & Greed Index, at 11, highlights extreme market fear, but oversold conditions may prompt short-term bounces.

Key technical levels to monitor include support at $2,770–$2,900 and resistance near $3,050–$3,120. The MACD and RSI for ETH/USD remain in bearish territory, while the Altcoin Season Index has dropped 18.18% weekly, reflecting continued capital flight.