Ethereum News Today: Ethereum tests $3,400 support after 2.51% daily decline

Ethereum (ETH) has returned to the critical $3,400 level, a key psychological and technical support zone that previously triggered a sharp 10% correction in July. As of August 1, 2025, ETH trades at $3,405, down 2.51% on the day, following a pullback from recent highs near $3,900 [1]. This retracement brings the asset back to a level where sellers previously dominated, raising questions about the sustainability of its bullish trend [1].

The price movement has sparked renewed volatility and uncertainty among traders, with the $3,400 line becoming a focal point for both buyers and sellers. On social platforms such as X, analysts like IncomeSharks have highlighted the significance of this level, suggesting that ETH could drop to $3,400 while still maintaining a bullish structure [1]. The zone between $3,400 and $3,600 has become a crucial battleground, where a firm defense could lead to a rebound toward $4,000, while a breakdown may invite further downward pressure.

Despite the recent pullback, Ethereum’s broader market structure remains intact. The asset continues to trade above the SuperTrend support line around $3,368, and the daily chart shows a pattern of higher highs and higher lows, consistent with a bullish trend [1]. The $2,800 level, which was previously a resistance, has also transitioned into a reliable support base, reinforcing the idea that this correction is more of a retracement than a reversal [1].

The market’s behavior near the $3,400 level is closely watched for signals of buyer resilience or capitulation. Earlier in July, a breakdown from this zone led to a $335 million Taker Sell Volume within just two minutes, indicating intense bearish pressure [1]. If ETH fails to reestablish a firm footing above this level, it could face renewed selling pressure and potentially extend the correction.

Broader macroeconomic conditions, including movements in the USD Dollar Index (USDX), are also influencing Ethereum’s near-term performance [4]. A stronger dollar typically weighs on risk assets like cryptocurrencies, adding another layer of complexity to the current environment. Meanwhile, a general pullback in the crypto market has led to increased caution, with investors assessing whether the dip presents a buying opportunity or a deeper correction [3].

In summary, Ethereum is at a critical juncture. Traders will be closely monitoring whether bulls can hold the $3,400 line and push the price back toward the $3,850 range. A successful defense could reinforce the ongoing bullish momentum, while a breakdown may signal a more prolonged correction. The next few trading sessions will be decisive in determining the asset’s immediate trajectory.

Source:

[1] Ethereum Taker Sell Volume Hits $335M In Just 2 Minutes (https://www.mitrade.com/au/insights/news/live-news/article-3-1006803-20250802)

[3] Latest marketpullback News, Opinions and Feed Today (https://www.binance.com/en/square/hashtag/marketpullback)

[4] USDX (US Dollar Index) (https://www.fastbull.com/quotation-detail/8400_USDX)