Ethereum News Today: Ethereum Falls Below $3,450 With 5.04% 24-Hour Drop Amid Crypto Market Selloff

Ethereum’s price dropped below $3,450 on August 3, 2025, recording a 5.04% decline over 24 hours amid broad market caution across the cryptocurrency sector [1]. The selloff follows a failed attempt to maintain levels above $3,600, marking a breakdown from recent consolidation. This decline has drawn attention from traders and analysts who are assessing whether it signals a temporary correction or the start of a more sustained bearish phase.

The downturn in Ethereum mirrors broader market dynamics, with Bitcoin and other major crypto assets also experiencing downward pressure. Risk aversion appears to be a key driver, as investors react to heightened volatility and uncertainty [2]. Despite the bearish price trend, Ethereum’s on-chain activity has remained robust, with nearly 257,000 new Ethereum addresses created in the last 24 hours, indicating continued network growth and user engagement [1]. This divergence between price and on-chain data highlights the complex interplay between sentiment and infrastructure.

Ethereum’s leadership, including co-founder Vitalik Buterin, has not issued any public statements addressing the recent drop [1]. The absence of official commentary has left the market to interpret the price action based on broader economic and technical indicators. Analysts note that the breakdown below $3,450 has reignited concerns about the sustainability of the $3,600 support level. Without a clear reversal or stabilizing pattern, the market may test further downside levels.

The broader crypto environment has also been affected by unrelated but impactful events, such as a large-scale XRP sell-off of 719 million tokens over 24 hours. While not directly linked to Ethereum, the event has intensified uncertainty and contributed to the cautious tone in risk-asset markets [5]. These developments reinforce the idea that Ethereum’s current correction is part of a larger digestion phase, rather than an isolated bearish shift.

Looking ahead, the potential for recovery remains contingent on Ethereum’s ability to regain key resistance levels and maintain on-chain growth. Historical patterns suggest that such downturns can reset bearish sentiment and lead to eventual recovery, though the timing and magnitude remain unclear [1]. Traders will be watching closely for signs of a reversal or continued downward momentum, with the market broadly in a waiting mode for new catalysts.

Source:

[1] Mitrade - https://www.mitrade.com/au/insights/news/live-news/article-3-1007362-20250802

[2] AInvest - https://www.ainvest.com/news/bitcoin-news-today-bitcoin-shows-early-signs-potential-bull-run-consolidation-2508/

[5] Binance - https://www.binance.com/zh-CN/square/post/27802630889185