Ethereum has entered a critical juncture with the risk of falling below $3,000. The intense wave of selling in the markets in recent weeks has increased the pressure on the leading altcoin, while technical indicators suggest that momentum is weakening.

In the past week, a severe liquidation process led to the liquidation of positions worth a total of $1.02 billion, with over 310,000 investors incurring losses. Approximately $269 million of this liquidation was directly related to Ethereum transactions. While the clearing of highly leveraged positions may relieve the market in the short term, it also exposed structural weaknesses.

From a technical perspective, the ETH price has declined to around $3,730, failing to break through the strong resistance at $4,200. Moreover, it has fallen below the 100-day moving average, which it had maintained for a long time. Currently, the $3,500 level stands out as a critical support. If this area is broken, the likelihood of a deeper correction towards below $3,000 may increase.

The RSI indicator falling below the level of 40 confirms that selling pressure is intensifying. The increasing trading volume also indicates that large investors are turning towards risk aversion. In particular, the rejection of Bitcoin at the $120,000 level triggered the overall downtrend in the market.

Investor sentiment remains negative. While ETH's short-term recovery attempts are limited, the high levels of leveraged long positions are deepening the waves of selling. Analysts indicate that the price may catch a brief breath above $3,500, but the overall trend is expected to continue downward.

Ethereum's drop below $3,000 may not only be a technical breakdown but also a significant turning point in terms of market psychology. Weak investor interest is being interpreted as a strong signal that a potential bull market has ended. Ethereum, which showed strong performance in the second quarter of 2025, is experiencing a loss of confidence amid increasing volatility in recent weeks. As long as current indicators do not change, the scenario of ETH falling below $3,000 is becoming increasingly likely.