Ethereum Price Retreats as Bears Take Control After $3,646 Rejection. Source: TokenPost
Ethereum (ETH) faced significant selling pressure on Tuesday, retreating 1.5% to around $3,579 after failing to break through key resistance levels. According to CoinDesk Research’s technical analysis model, the bearish momentum intensified as ETH dropped from $3,629 to $3,576 within a $136 trading range, with selling volume spiking 138% above average. The sharp decline confirmed a shift in market sentiment, suggesting bears now dominate the short-term trend following weeks of consolidation.
The selloff began after ETH was rejected at $3,646 during early morning trading. A surge in trading volume — reaching 338,852 contracts — triggered a decisive break below the $3,590 support zone, which had previously held firm during volatile swings. The cryptocurrency hit an intraday low of $3,532 before stabilizing, with price action now forming consistent lower highs despite multiple recovery attempts.
Technical indicators point to continued caution for traders. The $3,646 rejection set off cascading stop orders, overwhelming recent institutional buying from Republic Technologies’ $100 million ETH allocation and BitMine’s 3.5 million token holdings. Despite these large positions, the breakdown reflects a broader pattern of distribution and weakening momentum.
ETH’s failure to hold the $3,590 support signals a critical structural change in the market. The new resistance lies between $3,565 and $3,589, while the next key support zone sits at $3,510-$3,530. Analysts expect further downside pressure, with potential tests toward $3,480-$3,500 if selling persists.
Meanwhile, the CoinDesk Index 5 (CD5) rose slightly from $1,840 to $1,843 amid volatile conditions, highlighting continued uncertainty across the broader crypto market.