Can Ethereum Maintain $3000 or Will There Be a Rebound Soon?

Ethereum’s price has found stability within crucial support levels as the broader cryptocurrency market experiences a period of correction. Currently trading below $3,200, the second-largest digital asset is closely monitored by market participants to see if it can maintain the $3,000 threshold following the recent liquidation of $50.7 million worth of long positions. Despite the uncertainty, the Relative Strength Index (RSI) for Ethereum has rebounded to 37, indicating some renewed confidence among buyers. However, the presence of a “Death Cross,” where the 50-day Exponential Moving Average (EMA) falls below the 100-day EMA, suggests ongoing bearish pressure.

The recent downturn coincided with Bitcoin’s drop beneath $92,000, leading to a cascade of forced liquidations in leveraged trades for both major cryptocurrencies. Ethereum’s decline below $3,000 resulted in a 2.36% single-day drop, with the RSI plummeting to an oversold reading of 31.09. Despite this, formidable resistance levels lie at $3,800 and $4,000, where historical high-volume trading has established robust supply barriers. The primary question now revolves around whether Ethereum can reclaim the $3,000 mark or continue its descent towards $2,880.

Experts hold differing views on Ethereum’s future trajectory. While crypto strategist Tom Lee remains optimistic, predicting a potential rally to $7,000 within 45 days, technical analysts caution against broader market fragility exacerbated by the cryptocurrency’s 37% drop from its October high near $4,800. Lee’s positive outlook is underpinned by the increasing adoption of stablecoins on the Ethereum network and the impending Fusaka upgrade set for December, aiming to enhance scalability and reduce transaction costs through features like PeerDAS.

Adding to the uncertain landscape are wider economic conditions. Following the U.S. Nonfarm Payrolls report for August 2025, which revealed a meager 22,000 new jobs, speculation has arisen that the Federal Reserve might implement rate cuts before year-end. Such monetary easing could potentially benefit risk assets like Ethereum by prompting increased investment in higher-risk markets amid lower real yields and a weaker dollar. However, the crypto sector’s sensitivity to economic policy suggests that any Fed action could initially trigger price fluctuations before potentially providing support.

BlackRock’s recent move to establish a staked Ethereum Trust signals growing institutional interest in the sector. With plans to introduce a staked ETH investment product offering yield to clients, the asset manager’s initiative could further accelerate institutional participation, especially as staking rewards post-merge attract investors seeking returns.

Despite positive developments, Ethereum faces challenges stemming from ongoing deleveraging in the crypto sphere. On a day when ETH dipped below $3,000, 164,696 traders experienced position liquidations, indicating sustained downward pressure as open interest and funding rates suggest continued selling pressure. It remains to be seen whether Ethereum can defend the $3,000 level to instigate a potential recovery or succumb to further declines, possibly testing the $2,880 support region.

As Ethereum navigates these dynamics, the market teeters between impending declines and cautious optimism, with its short-term trajectory contingent on the ability of buyers to defend crucial support levels and initiate a rebound. The delicate balance persists, with the future direction of Ethereum poised at a pivotal juncture in the ever-evolving cryptocurrency landscape.