After a 21% decline this week and a 12% fall today alone, Ethereum is now approaching a key support zone near $3,000. The selloff has accelerated in recent hours, pushing the asset below both the 61.8% and 78.6% Fibonacci retracement levels, and briefly sending the price under its lower Bollinger Band.
With short-term momentum deeply oversold and trend strength increasing, attention is turning to whether $3,000 will act as a reliable support – or if further downside is likely.
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Oversold Indicators, But Trend Still Strong
Ethereum’s RSI(14) is currently at 28, and RSI(7) has fallen to 16 – both readings are considered extreme by most technical analysis standards. These levels often suggest a possible pause or reversal in the short term, especially when combined with high trading volume and price trading outside the Bollinger Bands.
At the same time, the Average Directional Index (ADX) has moved above 22, a level commonly used to identify strengthening trends. In this case, the direction is down, and the ADX supports the view that the current move has momentum behind it. Whether or not that continues likely depends on the market’s reaction around the $3,000 level – a round number that is also close to the 100% Fibonacci retracement from the March-July rally.
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Wider Market Pressure
The drop in Ethereum is taking place within a broader market correction. The total crypto market cap is down over 6.5% today, and Bitcoin has fallen below the $100,000 mark for the first time since June. Over $1.1 billion in crypto liquidations have been reported, suggesting a wave of forced selling across leveraged positions. Ethereum, along with several other top assets, has been affected by this pressure.
The next area to watch is Ethereum’s ability to stabilize around $3,125 – the final Fibonacci support from the recent rally – and the nearby psychological level of $3,000. A daily close below this zone would suggest the current downtrend remains in control and may shift focus toward previous consolidation areas lower on the chart.
