Ethereum price dropped below $3,000 and continues showing weakness as sellers push the cryptocurrency toward critical support levels. The second-largest digital asset by market capitalization is trading below key technical indicators, signaling potential further declines if bulls fail to defend the $2,880 threshold.
What Happened: Price Breakdown
Ethereum started a fresh decline after failing to hold above the $3,000 pivot level, mirroring Bitcoin's recent weakness.
The cryptocurrency broke below $2,980, entering what technical analysts classify as bearish territory.
The price fell through the 50% Fibonacci retracement level of the upward move from $2,775 to $3,075. A rising channel with support at $2,980 on the hourly chart of ETH/USD also gave way, according to data from Kraken.
Ethereum is now trading below $2,980 and the 100-hourly Simple Moving Average. Immediate resistance sits near $2,980, with the first key barrier at $3,000.
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Why It Matters: Technical Deterioration
If bulls protect the $2,880 level, Ethereum could mount a recovery toward $3,000 and potentially $3,050.
A clear move above $3,050 might propel the price toward $3,120, with further gains potentially reaching $3,200 or $3,220 in the near term.
However, failure to reclaim $3,000 resistance could trigger additional selling pressure. Initial support on the downside sits near $2,880 and the 61.8% Fibonacci retracement level from the recent swing low to high.
The first major support zone is located near $2,845. A break below that level might push Ethereum toward $2,800, with additional losses potentially sending the cryptocurrency to $2,775 or the next key support at $2,720, according to technical analysis.
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