Ethereum prices took a hit this Wednesday, dropping over 16% in a single day and coming close to the $3,300 mark, which wiped out all the different gains this cryptocurrency achieved in early 2025.

Ethereum was the favourite during the initial stages of the crypto rally, and the price correction shows the growing wariness of the investors. The sentiment in the market has slowed considerably when compared to the active bullish behaviour that was previously observed.

Ethereum Price Drop as Controlled Profit-Taking

Ethereum at the time of this writing was priced at $3,374, a 2.46% decline in the past 24 hours. The price drop for Ethereum has also been noted with the drop in trader activity and on-chain Ethereum-focused activity.

CryptoQuant analysts observed the price drop as controlled rather than panic increased profit taking. PelinayPA noted in her analysis that the Taker Buy-Sell Ratio on Binance remains just below 1.0.

Also Read: Ethereum Stablecoin Volume Soars to Record Heights in October

She went on to say that such a scenario would be profit taking as a trend remains active and not just capitulation. PelinayPA remarked that Ethereum price may find strong buying support between $2,955 and $3,000 before resuming its climb toward $5,000.

Key Resistance Levels Test Ethereum Price Stability

The technical analyst Ted Pillows states that the resistance area of the 3,500 to 3,600 is one of the more significant areas. The Ethereum price will tend to reach the level of support at $2,800 in case this range is not recaptured, which poses the risk of another strong Ethereum pullback.

On the growth, should Ethereum actually reclaim this zone of resistance at $3, 600, then it will be only natural that Ethereum will revert to a bullish trend, which will rejuvenate trust with the markets with Ethereum.

Finally, the Ethereum network is also becoming less active as the number of active addresses dropped by almost a quarter since mid-August. These declines in network activity will almost inevitably place Ethereum price in intense downward pressure.

Technical Indicators Signal Mixed Momentum

The Relative Strength Index (RSI) is hovering around 32 and has made a short recovery from being oversold. This is a strong indicator of declining bearish momentum. A move above 40, for example, is likely to position Ethereum to regain its price of $3,601, 200-day Exponential Moving Average (EMA).

The Moving Average Convergence Divergence (MACD) indicator has remained in a bearish position, selling since Monday. Price pressure will remain so long as Ethereum delivers below its potential winnings since traders are likely to cover MACD short positions.

Key Support and Resistance Levels

Market watchers are looking at the $2,800−$3,000 range as a key point where buyers will begin to level out. These ranges are historically places where buyers will start to purchase and hold for the long run. However, on the other hand, getting prices back to the 

Month	Min. Price	Avg. Price	Max. Price	Change
Nov 2025	$ 3,432.88	$ 3,781.36	$ 4,138.48	22.09%
Dec 2025	$ 3,621.14	$ 4,200.39	$ 5,208.02	53.64%

Nevertheless, the tightening of the U.S. Federal Reserve and declining overall cash flow will result in lower anticipated increases that will occur in the short term.

On-Chain Metrics Hint at Potential Recovery

According to Glassnode, Ethereum’s profit-supplying balance has seen a 32% decline from 78 million to 53 million as of October 6. This decline increases the likelihood of profit-supply pressure shedding and the price of Ethereum increasing nominally over the medium-term.

Conclusion

The failure of Ethereum is difficult to accept to most market analysts. This means that before Ethereum price could be in a position to revisit the current support zones and go ahead to outpace other profit-taking congestion zones. 

It would have to go above the levels of that other congestion zones, and then consider $5,000 as a potential target to be reached once again.

Also Read: Ethereum Price Forecast: Analysts Predict ETH to Reach $4,500 by Year-End?

Appendix: Glossary of Key Terms

Ethereum (ETH): The second-largest cryptocurrency by market capitalisation, powering the Ethereum blockchain.

Resistance Zone: A price level where selling pressure typically prevents further upward movement.

Support Level: A price area where buying pressure helps prevent further decline.

RSI (Relative Strength Index): A momentum indicator used to measure overbought or oversold conditions.

MACD: A trend-following indicator showing momentum shifts.

On-Chain Activity: Transactions and interactions occurring directly on a blockchain network.

Frequently Asked Questions: Ethereum Price

1. Why did the Ethereum price fall sharply?

The sharp decline was driven by profit-taking, reduced on-chain activity, and macroeconomic uncertainty, particularly around U.S. monetary policy tightening.

2. What are the key support levels for the Ethereum price?

Analysts identify $2,955 to $3,000 as strong support zones, with additional interest near $2,800.

3. Is Ethereum price expected to recover?

Yes. Many analysts expect Ethereum to stabilize and potentially rally toward $5,000 by year-end if it maintains support and reclaims the $3,600–$3,700 resistance range.

4. How is Ethereum performing against Bitcoin?

Ethereum has underperformed compared to Bitcoin recently, as capital rotates toward BTC amid increased market caution.

Read More: Ethereum Price Falls to $3,300: Is a Drop to $2,400 the Next Target?">Ethereum Price Falls to $3,300: Is a Drop to $2,400 the Next Target?