Ethereum News Today: Ethereum Trapped Near $3,500 as Bullish and Bearish Signals Clash

Ethereum remains in a pivotal phase as it consolidates near the $3,500 level following a failed attempt to break above $4,000. Traders and analysts are closely watching the technical and on-chain indicators to determine whether the next leg of the rally is imminent or if a deeper correction might occur. The recent price action, combined with key on-chain metrics, suggests that while the path to $4,000 is still intact, the market is testing the strength of buyers in this critical range.

On-chain data shows the Ethereum Exchange Supply Ratio has hit a multi-year low of 0.13, indicating that a smaller portion of ETH is held on centralized exchanges [1]. This trend is generally interpreted as bullish, as it suggests that holders are locking up their tokens in cold wallets, staking contracts, or custody solutions, thereby reducing the supply available for selling pressure. The reduced exchange liquidity implies that even moderate buying interest could lead to sharp price increases [1].

Technical analysis also remains cautiously optimistic. The daily chart shows that ETH is still above the key $3,500 support level, which was previously a resistance zone before the recent correction. The RSI has cooled from overbought levels to near 56, suggesting that the market has room to rally again if demand resurges [1]. The 100-day moving average crossing above the 200-day average—a golden cross—further supports the bullish bias, provided ETH remains above $3,500 [1].

However, the 4-hour chart presents a more nuanced picture. ETH recently broke down from a rising wedge, a pattern often seen at the end of strong uptrends. A bearish divergence on the RSI confirmed weakening momentum before the price fell to $3,350 [1]. The asset is now in a short-term trading range between $3,500 and $3,750, with a clean break above this zone needed to retest the $4,000 level. If buyers fail to hold this range, further downside into the $3,300 or even the $3,100 zone could follow [1].

Market sentiment also reflects cautious optimism. On July 23, 2025, a price prediction highlighted that Ethereum was on the verge of a parabolic move, with $4,000 as a key threshold [2]. By early August, however, the price had dipped below $3,500, and analyst @bl_ockchain noted the prior failed attempt to break through $4,000 [2]. Standard Chartered recently revised its price forecast for ETH to $4,000, citing increased institutional interest in the asset [3].

Despite these signals, Ethereum faces structural challenges. The Ethereum Fear and Greed Index indicates that while a breakout is in play, significant hurdles remain before the price can confirm a long-term bullish trend [4]. Analyst Michaël van de Poppe emphasized that Ethereum would need to surpass $4,000 to revalidate its prior high and continue the upward momentum [5]. Additionally, Binance observers are closely monitoring the $3,350 level as a potential support zone for a bullish rebound [6].

In summary, Ethereum is navigating a critical juncture. While the technical and on-chain fundamentals remain largely favorable, the market is in a holding pattern near $3,500, waiting for a decisive move. A sustained break above $4,000 would open the door to $4,400–$4,500 and confirm the bullish case, while a breakdown below $3,500 could trigger further short-term weakness. The coming weeks will be crucial in determining the direction of the broader crypto market as ETH seeks to reestablish itself as a leading smart contract platform [7].

Source:

[1] https://coinmarketcap.com/community/articles/6890a31190aa550a28eaa78a/

[2] https://www.bitcoinsensus.com/news/altcoins/must-read-ethereum-about-to-go-parabolic-watch-this-key-level

[3] https://coincentral.com/with-2-5m-users-and-7-6m-in-hardware-sales-blockdag-rethinks-mining-while-ethereum-targets-4k-and-avalanche-expands-finance/

[4] https://cfgi.io/ethereum-fear-greed-index/

[5] https://x.com/cryptomichnl?lang=en

[6] https://www.binance.com/en/square/hashtag/ETHEREUM

[7] https://messari.io/compare/cardano-vs-ethereum