Ethereum News Today: Ethereum Holds Above Key $3,400 Support Amid Volatile Correction

Ethereum (ETH) is currently trading near the critical $3,400 support level, a key psychological threshold that previously triggered a 10% price decline in July 2025. As of August 2, 2025, the price is hovering around $3,405, reflecting a 2.51% daily drop but still holding above the SuperTrend support near $3,368. This level is now a focal point for bulls defending the broader upward trend and preventing a deeper correction [1].

The recent correction follows a rally that pushed ETH close to $3,900, signaling a market-wide consolidation rather than a bearish reversal. Ethereum’s price structure remains bullish, characterized by a series of higher highs and higher lows. The $2,800 level, once a resistance in earlier months, has now transformed into a strong support, reinforcing the positive technical outlook [1].

The $3,400–$3,600 range is a pivotal battleground. If Ethereum successfully holds above this zone, particularly the SuperTrend support near $3,368, buyers could regain control and push the price toward a potential breakout at $4,000. Conversely, a decisive close below $3,300 could indicate weakening momentum and lead to further corrections [1].

Market analysts have noted the unusual selling pressure observed recently, with taker sell volume spiking to $335 million within just two minutes. This sharp decline pushed the price below $3,850 and into a consolidation phase, raising questions about whether the move is strategic profit-taking by large investors or panic selling from smaller traders [1].

The 50-period SMA at $3,762 is now acting as a key resistance level, and failure to reclaim the $3,760–$3,800 range could trigger a deeper pullback toward $3,175 or even $2,852. However, as long as Ethereum remains above the 200-period SMA, the broader bullish trend remains intact [1].

According to analyst IncomeSharks, the $3,400 level is crucial for maintaining bullish structure despite the pullback. “We could go all the way down to $3,400 and still have a bullish structure,” the analyst noted, highlighting the resilience of the Ethereum market [1]. Traders and investors are closely monitoring this level to determine whether the upward momentum can be sustained or if the market is shifting into a bearish phase [1].

Despite the recent volatility, Ethereum continues to benefit from strong fundamentals, including the growth of decentralized finance (DeFi) and the adoption of Layer 2 solutions. These factors continue to support the broader narrative of Ethereum as a leading platform for real-world asset (RWA) tokenization and innovation [1]. Institutional investors are also reportedly using the dip to accumulate, suggesting continued long-term confidence in the asset [1].

The next critical test for Ethereum is a sustained move back above $3,860, which could reignite bullish momentum and set the stage for another push toward $4,000. However, if bearish forces continue to dominate, the price could face an extended downturn, testing lower support levels in the coming days [1].

Sources:

[1] Ethereum Taker Sell Volume Hits $335M In Just 2 Minutes: Panic Or Profit-Taking?

https://www.newsbtc.com/news/ethereum/ethereum-taker-sell-volume-hits-335m-in-just-2-minutes-panic-or-profit-taking/