Ethereum Drops Below $3,000 Support as Bulls Struggle to Reclaim It: What Next?

Key Insights:

• Ethereum drops below $3,000 support, raising concerns over future price movements.
• Ethereum exchange reserves hit a 2016 low, signaling weak selling pressure.
• Ethereum’s ecosystem value continues to grow, showing long-term potential despite short-term price.

Ethereum has dropped below the crucial $3,000 support level, leaving market watchers concerned about its next move. The drop has raised questions about the future direction of the cryptocurrency, as bulls try to regain control. While Ethereum has seen strong growth in the past, the current price shift has sparked doubts.

Ethereum’s Struggle to Stay Above $3,000

Ethereum’s price recently fell below the $3,000 mark, a key support level that had held up for a long time. This shift is being closely monitored by investors and traders. Analyst Ted noted, Bulls need to reclaim this soon; otherwise, Ethereum will drop towards the December lows.” If the support level cannot be regained, Ethereum might face further losses in the short term.

As of the time of writing, Ethereum is trading around $2,928, down by 4.93% in the past 24 hours. This price drop has caused some concerns, as the market seems to be reacting negatively. Traders are waiting to see if Ethereum can regain its strength and push past the $3,000 threshold.

Ethereum Exchange Reserves and Market Behavior

Meanwhile, Ethereum’s exchange reserves have dropped to their lowest levels since 2016. According to VincenzaBTC, Ethereum’s total reserves across exchanges are now at approximately 16.2 million ETH. This marks a significant decrease compared to previous years. VincenzaBTC shared that “Binance alone dropped from 4.17 million to ~4.0 million ETH in 2026.”

This continuous withdrawal of Ethereum from exchanges suggests that there is weak selling pressure, which could be a positive sign for the future price of Ethereum. With less supply on exchanges, some analysts believe that Ethereum could see upward movement if demand increases.

Ethereum’s Growing Ecosystem Value

Despite the recent drop in price, Ethereum’s ecosystem continues to grow. The total value locked in Ethereum is currently at $341.5 billion, which is significantly higher than that of other blockchains. According to Ethereum Daily, this is nearly 11 times the value of Solana and 29 times the value of Binance Smart Chain (BSC).

The network’s growing intrinsic value is driven by its security, decentralization, and strong developer community. These factors suggest that Ethereum’s true potential is not yet reflected in its current market price. As Ethereum continues to build, some believe that the recent drop may only be a temporary setback before a potential rally.