• Ethereum has dropped more than 5% after bulls failed to keep the market above $3,500, with sellers briefly forcing the price down to $3,153.

• ETH now trades below $3,350 and the 100-hour simple moving average, while a bearish trend line near $3,500 keeps the short-term bias tilted to the downside.

• As long as the $3,150–$3,000 band holds, the move still looks like a correction within a broader advance, but a clean break below $3,150 would open the door toward $3,050 and even the $2,880–$2,850 support area.

Ethereum lost its grip on the $3,500 handle and rolled over sharply, shedding more than 5% in a broader market pullback. After failing to build on a push above $3,550, ETH slid back into a short-term bearish setup, with sellers driving the pair down through $3,350 and $3,250 before finally marking a low at $3,153. Since then, the bounce has been modest at best, leaving the path of least resistance tilted lower unless buyers can reclaim the $3,350–$3,500 zone.

From a price-action perspective, the market has effectively traced out a failed breakout. The latest leg lower started once Ethereum could no longer hold above $3,500 and the hourly chart printed a swing high at $3,561. The sell-off then gathered speed below $3,350 and extended to $3,153, where dip-buyers finally showed up. The current recovery has only managed to reach the 23.6% Fibonacci retracement of the drop from $3,561 to $3,153, signalling that, so far, this is more about profit-taking on shorts than about a genuine shift in control.

ETH is now trading under both $3,350 and the 100-hour simple moving average, a combination that keeps intraday sentiment cautious. On the way back up, the first pocket of supply is seen around $3,300, with stronger resistance clustered near $3,350, where the 50% Fibonacci level of the $3,561–$3,153 leg lines up with recent intraday price congestion. If buyers cannot force a decisive hourly close back above that area, any rebound risks turning into another opportunity for bears to reload positions.

The real line in the sand for short-term shorts sits slightly higher. Around $3,500, Ethereum faces a confluence of resistance: a key bearish trend line on the hourly ETH/USD chart and the prior failed support zone. A clean break through $3,500 with momentum would be the first sign that bears are losing their grip, potentially squeezing price toward $3,650. Above $3,650, the focus would shift to the $3,800 region and then the $3,880 resistance zone, where many traders would look to lock in gains on any stronger relief rally.

On the downside, the market has a more immediate set of levels to defend. Initial support now comes in near $3,200, just above last week’s low. The first major support remains the $3,150 area, where the latest downswing found a floor. If ETH settles below $3,150, that would confirm that the current pullback is morphing into a deeper correction, putting $3,050 back on the map. Below there, the psychological $3,000 mark is the next obvious downside magnet; a break of that region could see the move extend toward the $2,880–$2,850 band, where bargain-hunters are likely to test their nerve.

Technical indicators echo that cautious picture rather than signalling a washout. On the hourly timeframe, the MACD for ETH/USD is gaining momentum in the bearish zone, showing that downside pressure is still building rather than fading. The RSI has slipped below the 50 line and remains there, indicating that sellers retain the upper hand, but it has not yet reached levels that would flag an outright oversold capitulation. For traders who still see this as a healthy pullback inside a larger uptrend, the key will be whether Ethereum can keep $3,150–$3,000 intact while ultimately breaking back above $3,350 and then the $3,500 trend-line cap.