ETH Rejection at $3,500 Pushes Ethereum Into Defensive Mode as Bears Defend Critical Support

Ethereum has found itself in a defensive posture after failing to hold above the $3,500 resistance level, with the recent selloff erasing more than 5% of value and forcing ETH down to $3,153. The bounce that followed has been underwhelming, suggesting that profit-taking on short positions rather than genuine buying pressure is driving any recovery attempts. At current levels near $2.95K, the technical landscape tells a cautious story for bulls.

Price Action Breakdown: The Failed Breakout Pattern

The setup that unfolded was textbook failed breakout. Ethereum pushed above $3,550 but lacked the momentum to sustain higher levels. Once the market rolled below $3,500, selling accelerated through $3,350 and $3,250 before finding a floor at $3,153. The recovery from that low has only managed to reclaim the 23.6% Fibonacci retracement level, indicating that bears maintain control. ETH now sits beneath both the $3,350 mark and the 100-hour simple moving average—a combination that reinforces the near-term bearish bias.

The Critical Support Framework: Where Ethereum Must Hold

The $3,150–$3,000 band represents the key battleground. As long as buyers defend this zone, the current pullback can still be viewed as a healthy correction within a broader uptrend. However, a decisive close below $3,150 would signal that the move is shifting into deeper correction territory. Should that level fracture, the next targets become $3,050, followed by the psychological $3,000 handle. A break of that area could open the path toward the $2,880–$2,850 support band, where longer-term bargain-hunters would likely step in.

On the upside, $3,200 serves as immediate support, just above last week’s low. The real resistance to reclaim sits at $3,350, where the 50% Fibonacci level of the drop from $3,561 to $3,153 converges with recent price congestion. Only a clean, momentum-driven break back above $3,500—the key bearish trend line on the hourly chart—would signal that bears are losing their grip. A decisive move through $3,500 could propel Ethereum toward $3,650, with potential continuation toward $3,800 and the $3,880 resistance zone.

Indicator Signals: Still Leaning Bearish

The technical indicators reinforce the cautious picture. On the hourly timeframe, the MACD is gathering momentum in the bearish zone, showing that downside pressure is still building rather than fading. The RSI has dropped below the 50 line and remains there, confirming that sellers retain control, though oversold capitulation signals have not yet triggered.

The path forward hinges on whether Ethereum can stabilize the $3,150–$3,000 support band while eventually breaking back through $3,350 and reclaiming the $3,500 trend-line resistance. Until that happens, the risk-reward for buyers remains tilted to the downside.