Ethereum Crash: ETH Price Might Crash to $3,500 and Here's Why

Ethereum Price on the Edge: $4,000 Support at Risk

Ethereum ($ETH) is in a dangerous zone as it trades just above the $4,000 mark. After a sharp drop that briefly pushed the coin to $3,800, ETH has managed to claw back some ground—but the recovery looks fragile. With Bitcoin collapsing below $110,000, the pressure across the entire crypto market is weighing heavily on Ethereum, sparking fears of another breakdown toward $3,500.

Ethereum price in USD for the past week - TradingView

Why Is Ethereum Crashing?

Several key factors are driving the current crash in Ethereum and the broader crypto market:

• Bitcoin Crash: Bitcoin’s sharp decline under $110,000 has triggered panic selling across altcoins. ETH, as the second-largest crypto, is following BTC’s lead.
• Market-Wide Selloff: The entire crypto sector is under pressure, with investors de-risking amid heavy volatility and liquidity squeezes.
• Political Uncertainty: Global tensions and unclear policies on crypto regulation are pushing risk assets lower.
• Ethereum Technical Weakness: ETH’s chart shows clear signs of breakdown, with important support levels already tested.

Technical Analysis: ETH/USD Price Chart

The Ethereum daily chart reveals a fragile setup:

• Key Support Levels: $ETH briefly broke the $3,840 support, a level that has been tested multiple times in recent months. A close below this zone would expose the next downside target near $3,500, with deeper risks toward $3,200 if selling intensifies.
• Resistance Zones: On the upside, ETH faces immediate resistance at $4,350–$4,400, close to the 50-day moving average. Bulls need to reclaim this level to negate further downside pressure.
• Moving Averages: The 50-day SMA ($4,403) has already flipped into resistance, while the 200-day SMA sits far lower at $2,941, showing how much room ETH has to fall in an extended crash.
• RSI Indicator: The RSI is currently at 38, signaling bearish momentum. Any further drop into oversold territory could accelerate selling.

ETH/USD 1-day chart - TradingView

Ethereum Price Prediction: ETH Price Drops to $3,500?

Market analysts warn that ETH could revisit $3,500 in the coming days if Bitcoin fails to stabilize above $110,000. The close correlation between the two assets means Ethereum has little chance of decoupling in the short term. While some traders see $3,500 as a potential buy-the-dip opportunity, many fear that a break lower could trigger cascading liquidations.

Outlook: Is This the Start of a Bigger Ethereum Crash?

Ethereum’s price action is flashing warning signs. The fragile bounce from $3,800 may only be temporary if Bitcoin continues to fall and macro uncertainty persists. Unless ETH can hold above $4,000 and reclaim the $4,350–$4,400 resistance, the path of least resistance remains to the downside.

For now, Ethereum traders are bracing for volatility—with eyes on $3,500 as the critical line in the sand.