Ethereum News Today: Ethereum Tests $3,400 Support After 6% Dip Amid Bullish Technical Outlook

Ethereum (ETH) is currently retesting a key support zone that previously acted as a catalyst for a 10% rally. Following a recent pullback, the price has returned to this critical level, drawing attention from traders and analysts. The $3,400 mark is widely regarded as a pivotal support area. Even if ETH dips further, as long as this level holds, the broader bullish trend remains intact. A strong bounce from this zone could open the door for new buying opportunities and reinforce the long-term positive trajectory [1].

Market dynamics have shown mixed signals in recent trading sessions. Ethereum's price dipped 6% in the past 24 hours, reaching approximately $3,630 after briefly touching $3,800 [5]. Taker sell volume spiked to $335 million in just two minutes, prompting diverging views among analysts. Some interpret this as a healthy correction within a larger uptrend, while others caution that a further decline toward $3,400 could be on the horizon [3].

A recent analysis from CryptoPotato highlights the rejection at key resistance as a significant event, potentially leading to a more substantial pullback, with the support levels at $3,600 and $3,400 being closely watched [4]. If Ethereum manages to hold above $3,400, the probability of a sustained breakout increases, according to AInvest [8]. Analysts are also pointing to key price levels for potential rebounds in the coming days.

BlackRock’s ETF inflows have contributed to strong bullish momentum, with Ethereum’s price dipping 2.24% to $3,616 on August 1, 2025, yet still showing resilience above key exponential moving averages [6]. The Relative Strength Index (RSI) on the daily chart suggests that a continuation of the pullback could push ETH down to the next support at $3,500 [7].

In the short term, a breakout above $3,325 could send Ethereum toward $3,400 or higher, according to HolderStat [9]. As long as the price remains above $3,260, bulls retain control. Moreover, a successful break above the $3,820–$3,850 resistance zone could lead to a rapid push toward higher levels [10].

Taken together, these developments indicate that while Ethereum faces short-term volatility, the overall technical setup remains supportive of a bullish bias, provided key supports such as $3,400 hold firm.

Source:

[1] Can the Ethereum (ETH) Price Reach $4000 in the Next 24 ... (https://coinpedia.org/price-analysis/can-the-ethereum-eth-price-reach-4000-in-the-next-24-hours-heres-what-you-need-to-know/)

[3] Ethereum Taker Sell Volume Hits $335M In Just 2 Minutes (https://www.tradingview.com/news/newsbtc:2eafe1618094b:0-ethereum-taker-sell-volume-hits-335m-in-just-2-minutes-panic-or-profit-taking/)

[4] Crypto Price Analysis August-01: ETH, XRP, ADA, SOL, ... (https://cryptopotato.com/crypto-price-analysis-august-01-eth-xrp-ada-sol-and-hype/)

[5] Ethereum Drops 6% After Hitting $3800, But Analysts See ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1006958-20250802)

[6] Ethereum Price Dips 2.24% Amid Volatility, ETF Inflows ... (https://www.ainvest.com/news/ethereum-news-today-ethereum-price-dips-2-24-volatility-etf-inflows-surge-29-83m-2508/)

[7] Ethereum Price Forecast: ETH dips below ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1005725-20250801)

[8] Ethereum News Today (https://www.ainvest.com/news/ethereum-news-today-ethereum-3-860-key-breakout-multi-year-triangle-pattern-2507/)

[9] Ethereum / TetherUS PERPETUAL CONTRACT Trade ... (https://www.tradingview.com/symbols/ETHUSDT.P/ideas//page-4/)

[10] ETHUSDT_B125AA.USD trade ideas (https://www.tradingview.com/symbols/ETHUSDT_B125AA.USD/ideas/?asset=base&sort=recent&video=yes)