Ethereum News Today: Ethereum Faces $3,200 Test: Network Improvements Compete With Broad Market Downturn

Ethereum Faces Ongoing Pressure Amid Mixed Market Signals

Ethereum (ETH) is currently struggling to gain traction, hovering around the $3,200 mark as conflicting technical indicators point to exhaustion across the cryptocurrency market. Although there has been a slight uptick in bullish activity, ETH is encountering significant resistance at its 50-day Exponential Moving Average (EMA) of $3,468, a crucial threshold for the asset’s next move.

The Relative Strength Index (RSI) has risen to 41, moving away from oversold territory and indicating that bearish momentum may be easing. However, the presence of two Death Cross formations on the daily chart continues to reflect a prevailing negative outlook. While the MACD indicator recently flashed a buy signal, a sustained push above the zero line is necessary to confirm a shift toward bullish sentiment.

Network Upgrades and Scalability Improvements

Ethereum’s recent increase in block gas limit to 60 million—the highest in four years—represents a significant technical enhancement aimed at boosting the network’s scalability. Backed by more than 513,000 validators, this change enables higher transaction throughput per block, which could alleviate congestion and enhance efficiency as the Fusaka upgrade approaches. Despite this positive development, the price of ETH remains largely unchanged, lingering near $3,000.

Wider Market Trends and Bitcoin’s Influence

Market conditions remain challenging, with Bitcoin (BTC) struggling to reclaim its own 50-day EMA at $100,937. This has had a cascading effect on altcoins, including Ethereum, which are facing increased selling pressure. Notably, large holders have ramped up their BTC deposits to exchanges, reaching 9,000—a signal that a deeper correction may be underway. Analysts caution that Bitcoin could slide toward the $70,000–$80,000 range. Ethereum is experiencing a similar trend, with rising exchange inflows as the sell-off accelerates, pushing ETH closer to bear market lows.

Altcoin Performance and Sector Fragility

XRP’s recent sharp rebound, fueled by ETF developments and favorable technicals, underscores the volatility in altcoin markets. While XRP’s climb above $2.23 demonstrates potential for recovery, Ethereum’s progress remains limited. Traders are monitoring the $3,200 level closely, as a decisive move above the 50-day EMA could spark renewed upward momentum. Conversely, failure to maintain this level may result in a retest of the critical $3,000 support zone.

Solana’s Setbacks Add to Market Uncertainty

Solana (SOL) has also faced significant challenges, with a 20% decline in Total Value Locked and negative ETF flows contributing to a cautious market environment. Additionally, the recent Upbit hack, which resulted in the theft of $36 million in Solana assets, has heightened concerns about liquidity and could have ripple effects across other tokens.

Looking Ahead for Ethereum

As Ethereum navigates this pivotal period, its direction will be shaped by the interplay of technical signals, ETF activity, and overall market sentiment. A sustained move above $3,468 could revive optimism among investors, but for now, bearish forces continue to dominate the narrative.