Ethereum News Today: "Ethereum drops below $3,600, 1.95% decline as $4,000 sell wall looms"

Ethereum (ETH) dropped below $3,600 on July 22, 2025, marking a 1.95% decline over 24 hours and breaching a critical psychological threshold [1]. The price action followed weeks of consolidation between $3,600 and $3,850, a range where Ethereum had previously surged over 80% since January 2025 [6]. The decline triggered a sharp increase in liquidation activity on major centralized exchanges, with $1.79 billion in long positions at risk as the market faced renewed downward pressure [2]. A trader holding $3 million in ETH also faced heightened exposure as the price slid below $3,700, raising concerns about potential forced liquidations [8].

The $4,000 level has emerged as a significant barrier to upward movement, with a sell wall—accumulated sell orders—potentially deterring buyers from pushing the asset higher [9]. Despite the recent decline, Ethereum’s weekly performance remained positive, posting a 24% gain as of July 22 [4]. However, proximity to the $3,600 level has amplified leverage risks, with traders remaining cautious amid macroeconomic uncertainties. Whale activity further complicated the market dynamic, as large holders reportedly targeted overleveraged long positions as ETH slid below $3,700, signaling a shift in institutional strategy [5].

The broader market context highlights Ethereum’s role as a bellwether for crypto trends. While its price action reflects heightened volatility, the lack of decisive momentum has prompted a wait-and-see approach among traders. A sustained break below $3,600 could deepen bearish sentiment, while a rebound above $3,800 might reignite buying interest. Analysts caution that key resistance levels at $3,600 and $4,000 will be pivotal in determining the next phase of Ethereum’s trajectory.

The decline coincided with heightened geopolitical tensions, including comments from former U.S. President Donald Trump on tariff policies, which sparked market volatility and a 2.08% 24-hour drop on July 23 [7]. The ETH/BTC ratio also surged to a 30-day high, indicating a potential shift in asset allocation within the crypto space [7]. Meanwhile, Ethereum’s recent performance has been marked by mixed signals: while it floated around $3,600 with a 7% gain over seven days, technical indicators suggest limited downside if the $3,670 resistance is not cleared [5].

Analysts have emphasized the importance of overcoming the sell wall at $4,000 to enable a sustained rebound to $3,800. According to an analyst’s forecast, Ethereum’s rejection near its yearly high of $3,860 could test the $3,600 support level, with a successful retest potentially setting the stage for a recovery [10]. However, the market remains fragmented, with institutional activity and macroeconomic factors—such as Trump’s trade rhetoric—adding layers of uncertainty.

The price action underscores the delicate balance between short-term volatility and longer-term structural trends. While Ethereum’s adoption metrics, including record daily transactions in 2025, highlight its foundational role in the crypto ecosystem [6], the immediate outlook hinges on resolving leverage-driven risks and navigating external shocks. Traders are closely monitoring the $3,600 and $4,000 levels as critical decision points for the next phase of ETH’s price movement.

Source:

[1] [Ethereum Drops Below $3600](https://news.moomoo.com/flash/20737182/ethereum-drops-below-3600)

[2] [If ETH falls below $3600, the liquidation intensity of long positions on major CEXs reaches 1.79 billion](https://www.binance.com/en/square/post/27322004432097)

[4] [Ethereum (ETH) Drops 2% to $3650 After Reaching $3850 Peak](https://www.ainvest.com/news/ethereum-news-today-ethereum-drops-2-3-650-reaching-3-850-peak-2507/)

[5] [Ethereum (ETH) Slips as Whales Hunt Overleveraged Longs](https://cryptopotato.com/ethereum-eth-slips-as-whales-hunt-overleveraged-longs-below-3-7k/)

[6] [Ethereum Adoption Accelerates As Daily Transactions Set 2025 Record](https://www.tradingview.com/news/newsbtc:ea803c661094b:0-ethereum-adoption-accelerates-as-daily-transactions-set-2025-record/)

[7] [Ethereum Slides Below $3600 Amid Trump Tariff Concerns](https://www.ainvest.com/news/ethereum-news-today-ethereum-slides-3-600-trump-tariff-concerns-eth-btc-ratio-hits-30-day-high-2507/)

[8] [Ethereum (ETH) Price Dips Below $3700, Major Trader at Risk](https://blockchain.news/flashnews/ethereum-eth-price-dips-below-3-700-major-trader-risks-liquidation-with-nearly-3m-in-losses)

[9] [Ethereum Price Faces Huge Sell Wall to Block $4000 Push](https://www.thecoinrepublic.com/2025/07/22/ethereum-price-faces-huge-sell-wall-to-block-4000-push/?amp)

[10] [Ethereum Ready For $3800 Reclaim Despite Rejection](https://www.mitrade.com/insights/news/live-news/article-3-982437-20250724)