The Crypto Pullback Explained: Here's Why Ethereum Tumbled Below $3,100

Why Did Crypto Drop? The Domino Effect

Ethereum (ETH) didn’t crash in a vacuum—it fell because Bitcoin led the charge lower. When BTC rolled over from resistance, ETH followed suit, losing its grip on $3,180 and sliding all the way down to $3,026 in a hurry. That’s what happens when the broader market loses momentum: altcoins feel the pain twice as hard. The question now is whether this is a temporary stumble or the start of something more serious.

The $3,000 Psychological Barrier: Do Bulls Hold or Do They Panic?

The market has drawn a line in the sand at $3,000. ETH printed a low at $3,026 before attempting to stabilize, and right now it’s in the classic “test and bounce” phase. Here’s the problem: every attempt to climb higher is running into sellers around $3,175–$3,200. That’s not the kind of price action that screams confidence.

Currently, ETH is struggling below $3,200 and stuck under the 100-hour Simple Moving Average—both bearish tells in the short term. For bulls to shift the narrative, they need a clean break above $3,200. Without that, every rally looks like a relief bounce rather than real recovery.

Charting the Path Higher: $3,150, $3,175, $3,200

If Ethereum manages to extend its rebound, here’s the resistance ladder:

$3,150 aligns with the 50% Fibonacci retracement of the entire move down from $3,273 to $3,026—this is where early sellers might take profits.

$3,175–$3,180 marks the bearish trend line on the hourly chart. This is the ceiling that keeps capping every bounce attempt.

$3,200 is the inflection point. A decisive close above this level signals that ETH is transitioning from “temporary bounce” to “legitimate recovery.” If that happens, upside targets open toward $3,250, and a push through there could eventually challenge $3,320 and $3,400 in the near term.

The Downside Trapdoor: What Happens If $3,050 Breaks?

Support levels matter just as much as resistance. If sellers return and push ETH lower:

• $3,080 is initial support
• $3,050 is the critical level—a clean break below here suggests ETH is heading back to retest lows with real conviction
• Below $3,050, the path leads to $3,020 and then the psychological $3,000 zone
• If $3,000 fails to hold, $2,940 becomes the next floor

The bottom line: $3,050 is the true battleground. As long as that level holds, the move looks corrective. If it breaks, panic mode becomes a real possibility.

Indicators Are Sending Mixed Signals

Here’s where it gets interesting. On the technical side, the hourly MACD is starting to show bullish momentum, and RSI sits above 50—suggesting intraday buyers have clawed back some control. That’s the encouraging part.

The catch? Indicators can look constructive while price remains pinned under resistance. ETH might be bouncing, but it hasn’t escaped. Until it breaks decisively above $3,200, every rally is fighting an uphill battle against sellers.

The Bottom Line

Ethereum’s drop ties back to broader crypto weakness, with Bitcoin leading the retreat. The current price action suggests a bounce is underway, but its durability depends entirely on whether ETH can punch through $3,200. If it can’t, then $3,050 becomes the danger zone—a break below that level resets the entire bullish narrative and sends ETH back toward the $3,000 psychological floor. For now, it’s a test: do bulls have the fuel to reclaim higher ground, or are sellers just reloading?