NEW YORK – Ethereum’s native token, Ether (ETH), experienced a notable downturn in early trading, falling approximately 1.48% to dip below the psychologically significant $3,500 support level. The move signals a potential short-term trend reversal for the digital asset, which had enjoyed a strong rally in previous weeks.
The price drop is part of a wider cooling-off period across the cryptocurrency market, with Bitcoin also seeing modest losses. Market analysts suggest the decline is a natural consolidation phase following significant upward momentum, which was partially fueled by speculation around the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. The initial report of the price movement originated from a market alert by the cryptocurrency exchange MEXC.
“We’re seeing classic profit-taking behavior after a strong run,” said one senior analyst at a digital asset research firm. “The $3,500 mark was a critical floor that both bulls and bears were watching. Its breach could invite further selling pressure in the immediate term.”
The descent has traders and investors closely monitoring technical charts for the next major support zone. Many experts point to the $3,350 to $3,400 range, an area of previous consolidation, as the next potential line of defense for Ether’s price. A failure to hold this level could signal a more extended correction.
Looking ahead, market sentiment remains cautiously optimistic, contingent on macroeconomic factors and regulatory developments. “While this dip may cause some nervousness, the long-term fundamentals for Ethereum, including its network upgrades and institutional interest, haven’t changed,” the analyst added. “The key question is whether this is a brief correction or the start of a deeper retracement. The next 48 hours will be critical for determining market direction.”