Ethereum Falls Below $3,000 Again as Bulls Lose Momentum

Ethereum’s recent breakout above the $3,000 mark was short-lived, raising concerns among traders and investors. After briefly surpassing this key psychological resistance, ETH quickly reversed course and is now trading around $2,980. The rapid rejection suggests that bullish momentum is fading and profit-taking is on the rise.

The daily chart paints a cautious picture. Ethereum rallied strongly from the $2,600–$2,800 range, with a few high-volume green candles. However, the rally was quickly met with selling pressure, forming a notable rejection wick—a classic sign that traders are locking in gains and hesitant to push the price higher. Compounding the weakness, Bitcoin’s pullback of several thousand dollars during Ethereum’s breakout attempt has dragged ETH sentiment down further, highlighting the tight correlation between the two assets.

Technical indicators reflect overbought conditions, with Ethereum’s RSI approaching 70. While the broader uptrend remains intact—ETH still trades above its major moving averages (the 200-day EMA at $2,474 and 50-day EMA at $2,587)—this failed breakout suggests a possible return to the $2,800 support zone if buyers don't regroup swiftly.

To revive upward momentum, Ethereum must reclaim and close above $3,000 on strong volume. Without confirmation, this false breakout could mark the beginning of a short-term correction, especially if macro pressures persist.

As the crypto market remains volatile, Ethereum’s next moves will likely depend on Bitcoin’s stability and overall market sentiment. For now, ETH’s struggle at $3,000 serves as a cautionary tale for bulls hoping for a sustained rally.