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Ethereum has officially slipped below the $3,000 mark, falling to a four-month low after trading near $4,900 at its August all-time high. According to reports, ETH’s correction stands at approximately - 40 % from its recent peak.
This sharp drop has triggered concern among traders and investors: has the Ethereum bull run ended, or are we simply in a reset phase?
Why Ethereum is Crashing
1. Macro Risk & Risk-Off Sentiment
Ethereum’s slide is happening amid a broader risk-off backdrop in financial markets. With global growth concerns, rising interest rates and institutional caution, risk assets like crypto are taking a hit. (See how Ethereum “fell to a 4-month low despite recent layer-2 growth”.)
2. Technical Breakdown of Key Support
ETH breached several important support levels, such as the psychological $3,000 zone. According to analytics, a break below this mark could open the door to further declines toward $2,700 or even $2,380.
3. Leverage, Liquidations & Correlation With Bitcoin
Ethereum is strongly correlated with Bitcoin and broader crypto derivatives. When Bitcoin slipped under ~$90,000, ETH followed suit triggering long-liquidations worth hundreds of millions.
4. Sentiment Shift & On-Chain Indicators
On-chain data shows accumulation by long-term holders is strong, but new investor demand appears weakened. Some analysts suggest ETH is nearing its long-term holder cost‐basis at around $2,895, signaling potential bottom territory.
Is the Bull Market Over?
Not necessarily but it’s definitely on pause. Here’s how to interpret the current situation:
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Reset scenario: Ethereum has corrected, leveraged participants have been shaken out, and the market may be in a consolidation phase before the next up-leg.
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Bull market still intact if:
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ETH reclaims key support and resistance zones (particularly $3,100 – $3,200) and sustains above them.
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On-chain fundamentals (staking growth, DeFi usage, network activity) continue improving.
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Bull market may be ending if:
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ETH fails to reclaim $3,100 and keeps sliding toward $2,700 or below, and if demand remains weak.
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Macro conditions worsen dramatically or institutional flows reverse.
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Right now, reclaiming $3,000 is the first test. If ETH can stabilize around $3,100-$3,200 range and build momentum, the bull thesis remains credible. If not, we may be looking at a prolonged bear or choppy market environment.
What to Watch Next
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Support and resistance levels: $2,895 (long-term holder cost basis), $3,100-$3,200 (near term resistance) and $2,700 (possible next floor).
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Exchange flows and futures open interest: Rising exchange reserves may signal selling pressure; falling open interest may indicate deleveraging.
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Network fundamentals: Growth in staking, DeFi TVL (total value locked), and layer-2 adoption could underpin a rebound.
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Macro and regulatory signals: Crypto markets are increasingly sensitive to interest-rate expectations, regulation and institutional adoption.
FAQs
Q1: How much has Ethereum dropped from its August high?
Ethereum’s August all-time high was around $4,945; the recent fall below $3,000 represents a roughly 40 % decline.
Q2: Does falling under $3,000 mean the Ethereum bull market is over?
Not necessarily. It may signal a reset or consolidation. The bull market remains intact if key support is regained and fundamentals hold; it may be ending if support fails and demand dries up.
Q3: What is the most important price level for Ethereum now?
Reclaiming the $3,100-$3,200 range is critical. On the downside, $2,895 is noted as the average cost basis for long-term holders and may act as a floor.
Q4: Why is Ethereum’s price so sensitive to Bitcoin?
Ethereum tracks Bitcoin due to shared market sentiment, leverage in crypto derivatives, and cross-asset flows. When Bitcoin drops hard, ETH often follows.
Q5: Are there positive signals despite the drop?
Yes long-term holder accumulation remains strong, and technical indicators are showing potential oversold conditions, which could set the stage for a rebound.
Q6: What should investors do in this environment?
Review your investment horizon and risk tolerance. If you believe in Ethereum’s fundamentals and long-term outlook, consider strategic accumulation rather than panic selling. Monitor key levels, macro developments and on-chain metrics closely.