Ethereum Free Falling, Bears Broke $3,300—More Losses Incoming?

Ethereum is deep in red at press time, down roughly 20% from March 2024 highs. Although the path of least resistance is northwards, aligning with the May 20 bull bar, there are hints of weakness. This is especially so following the recent crash below the support at $3,300. At this pace, traders may consider shorts, trading the bear breakout formation of June 24 as they eye the May 20 low.

Traders are keen on riding the current trend, selling on every attempt higher. The skew shows on Ethereum’s current performance. After days of lower lows, ETH is down roughly 3% in the previous week. Considering the breakout on June 24, participation rose, surging to over $21 billion when writing. Any follow-through of yesterday could see Ethereum crumble even further, dropping to crucial support levels set out in May 2024.

As bears press on, traders are watching the following Ethereum news today:

• Ethereum might be down today, but one venture capital expects even more sell-off even once spot ETFs launch in early July. The VC cited the low institutional interest in the product and the low network cash flows as reasons for skepticism.
• Amid the crash in ETH prices, network activity is also taking a hit. According to on-chain data, the average gas fee on Ethereum is down to its lowest in seven months. The contraction is partly due to the activation of Dencun in March.

ETH/USD is in red, down roughly 20% from March 2024 highs.

Even though sellers are dominant, they are yet to completely reverse May 20 gains.

Still, aggressive sellers can continue adding their positions, targeting $2,800 following the break below $3,300 on June 24.

The only time this will change is if Ethereum bulls absorb the selling pressure, lifting prices back above $3,300 and ideally to June 24 highs.

In that event, there will be a double-bar bullish formation, potentially marking a local bottom and resumption of the May 20 uptrend.