Ethereum News Today: Ethereum's Critical Support Levels: Where Bulls and Bears Clash for Control

Ethereum's price continues to struggle as bearish momentum intensifies, with the cryptocurrency down 3.43% to $3,325.72 as of Nov. 6, marking its largest percentage decline since Nov. 4, when it fell 10.73% to $3,212.46, according to a Morningstar report. The recent selloff has pushed Ethereum 32.88% below its all-time intraday high of $4,955.23 hit on Aug. 24, despite a 134.02% rebound from its 52-week low of $1,387.85 in April, in a separate Morningstar report. Over the past five days, ETH has lost four sessions, with its year-to-date return now at -0.57%.

Technical analysts highlight critical support levels as the key battleground. The $3,550 threshold, historically a recovery catalyst, is now under pressure after Ethereum fell below $3,800 and the 100-hourly simple moving average (SMA), according to Holder.io. A breakdown below $3,550 could open the door to further declines toward $3,500 and potentially $3,420, according to The Currency Analytics. Conversely, a rebound above $3,650 or $3,740 could signal short-term stabilization, though sustained gains above $3,800 would be needed to retest the $3,880 resistance, where prior rallies have faltered.

The bearish trend is reinforced by technical indicators. The MACD for ETH/USD remains in bearish territory, while the RSI has dipped below 50, confirming ongoing selling pressure, according to Bitget. Traders are closely monitoring the $3,550 support level, with a decisive daily close below it potentially extending the correction toward $3,350 or even $3,300. Meanwhile, the broader crypto market remains tied to Bitcoin's performance, which has also struggled to hold above $110,000, exacerbating risk-off sentiment.

Market participants are split on the long-term outlook. While short-term bearishness dominates, some analysts argue the current consolidation is part of a healthy correction following weeks of gains, with Ethereum's fundamentals in DeFi and Layer 2 ecosystems still intact, The Currency Analytics notes. However, further macroeconomic uncertainties, including U.S. Federal Reserve policy and budget negotiations, continue to weigh on risk appetite.

For now, traders are advised to watch key levels: immediate resistance at $3,650 and $3,740, and critical support at $3,550 and $3,500. A sustained move above $3,920 could reignite bullish momentum, but until then, caution remains warranted amid volatile economic conditions.