Ethereum News Update: Ethereum Challenges $3K Support Level as Bears Target $2.5K and Bulls Strive for a Comeback

Ethereum's value has

for the first time since July 2024, signaling a notable point in its persistent downward movement. The digital asset dropped to a low of $2,870, while spot ETFs linked to across six straight days. This steady withdrawal of funds highlights increasing investor caution, a $16,000 target for 2025 to be unlikely.

Technical signals further support the negative sentiment. Ethereum's 14-day Relative Strength Index (RSI)

, pointing to oversold territory, while ETH/USD moving averages indicate a "Strong Sell" with 12 sell signals and no buy signals. , the price has fallen below crucial Fibonacci supports and the 200-day simple moving average, leading to automated selling. Market makers, already impacted by a $20 billion liquidation in October, are as they liquidate assets to fulfill obligations.

The wider market environment is adding to Ethereum's difficulties. to 58.1%, drawing investment away from altcoins such as . This behavior is consistent with previous corrections, where investors gravitate toward as a safer option. At the same time, Ethereum's MVRV ratio (market value to realized value) stands at 0.89, by holders incurring losses—a typical sign of capitulation.

Price movement points to ongoing instability. Ethereum is now

, and a drop below this threshold could open the way to $2,500. On the other hand, might restore some bullish sentiment, though analysts warn that lasting recovery depends on Bitcoin's steadiness and improved liquidity from market makers. The Fear & Greed Index, sitting at 11, reveals intense market anxiety, but the oversold state could trigger brief rebounds.

Important technical areas to watch are

and resistance around $3,050 to $3,120. The MACD and RSI for ETH/USD remain , while the Altcoin Season Index has , indicating persistent capital outflows.