Ethereum is retesting the crucial $3,400 support level that previously caused a 10% decline in July. Bulls are defending this zone, aiming to regain momentum for a potential breakout toward $4,000.
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Ethereum revisits $3,400, a key psychological support level influencing trader sentiment.
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ETH maintains a bullish market structure, trading above the SuperTrend support near $3,368.
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If $3,400 holds, bulls may push ETH toward a $4,000 breakout target within the ongoing upward trend.
Ethereum tests $3,400 support, defending bullish momentum amid market volatility. Stay updated on ETH’s breakout potential and key price levels.
What Is Driving Ethereum’s Return to the $3,400 Support Level?
Ethereum’s price has retraced to the $3,400 support level, a critical zone that triggered a 10% drop in July. This level now acts as a battleground between buyers and sellers. As of August 1, 2025, ETH trades around $3,405, reflecting a 2.51% daily decline but still holding above key technical supports. This retracement follows a recent rally that pushed prices close to $3,900, indicating a healthy market correction rather than a reversal.
How Does Ethereum’s Market Structure Indicate Bullish Momentum?
Ethereum’s broader market structure remains intact with a pattern of higher highs and higher lows, confirming an ongoing bullish trend. The price stays above the SuperTrend support at approximately $3,368, which continues to signal buying strength. The $2,800 resistance from earlier in the year has flipped into a solid support base, reinforcing the positive outlook. This orderly correction suggests that bulls remain in control despite short-term volatility.
What Are the Possible Scenarios in the $3,600–$3,400 Price Range?
The $3,600 to $3,400 zone is pivotal for Ethereum’s near-term direction. If support holds firmly, ETH could bounce back and target the $4,000 level, continuing its breakout trajectory. Conversely, a decisive close below the SuperTrend support near $3,368–$3,300 could indicate weakening momentum and deeper corrections. Traders are closely monitoring this range to gauge whether the bullish structure will sustain or shift toward a bearish phase.
What Does Expert Analysis Say About Ethereum’s Price Movement?
According to market analyst IncomeSharks, “$ETH—Back to the line that saw a 10% last time. We could go all the way down to $3,400 and still have a bullish structure.” This perspective highlights the resilience of Ethereum’s bullish trend despite recent pullbacks. The $3,400 level has become a psychological battleground, where trader sentiment is crucial in determining the next price direction.
$ETH – Back to the line that saw a 10% last time. We could go all the way down to $3,400 and still have bullish structure. pic.twitter.com/PKC2ZXJvVW
— IncomeSharks (@IncomeSharks) August 1, 2025
Frequently Asked Questions
What is the significance of Ethereum’s $3,400 support level?
The $3,400 level is a key support zone that previously triggered a 10% price drop in July. Holding this level is critical for maintaining Ethereum’s bullish momentum and avoiding deeper corrections.
How likely is Ethereum to reach $4,000 after this retracement?
If Ethereum holds above the $3,400 support and maintains its bullish structure, a move toward $4,000 is increasingly probable as part of the ongoing breakout pattern.
Key Takeaways
- Ethereum revisits $3,400 support: This level is crucial for bullish momentum and market sentiment.
- Market structure remains bullish: ETH trades above SuperTrend support, confirming an upward trend.
- Potential breakout target at $4,000: Holding support could lead to renewed buying pressure and higher prices.
Conclusion
Ethereum’s return to the $3,400 support level marks a critical juncture in its price action. The bullish market structure remains intact, supported by technical indicators and expert analysis. Maintaining this zone could pave the way for a breakout toward $4,000, signaling continued strength in ETH’s upward trend. Traders and investors should closely monitor this level for signs of sustained momentum or potential corrections.
