Ethereum Falls 10% Amid ETH Supply Crisis: Will Bulls Hold $3,700?
Ethereum is down, sliding 10% from March 2025 highs. Even so, ETH bulls must hold $3,700 by close of the day for the uptrend to be valid
Ethereum, like Bitcoin, is under pressure. As expected, ETH losses are more pronounced considering its relatively low liquidity. Still, the uptrend remains from a top-down preview. Unless there is a rapid shift in trend, lifting prices above $3,900 this week, the path of least resistance, in the short term, is southwards. The June 6 bar will influence the immediate price trajectory, possibly even cementing the position of sellers.
As things stand, Ethereum is sliding, down roughly 10% from its all-time high. Even so, the coin is stable in the previous day but up 4% in the last week. The dump on June 6 impacted sentiment, looking at participation. The average trading volume slipped below $10 billion on the last day. Nonetheless, this will likely pick up as the session progresses.
The following Ethereum news events are worth watching:
- Ethereum could be the largest altcoin by market cap. However, one analyst thinks this is rapidly changing with Solana in the equation. If SOL maintains its uptrend, the argument is that the coin will stretch gains versus the second world’s most valuable coin.
- ETH withdrawals across most centralized exchanges continue. At spot rates, it stands at an 8-year low. The trend will likely continue, especially once a spot Ethereum ETF is approved in the coming weeks or months.
Ethereum Price Analysis
ETH/USD is bearish in the short term.
After the upswing from May 20, prices have been stable in recent days before the drop on June 7.
There is a wide-ranging bear bar that clearly defines the short-term trend.
Since prices also closed below the 20-day moving average, traders might look for shorting opportunities.
Thus far, $3,700 is a crucial support that bulls must hold by the end of the day.
Any break below this line today might see Ethereum drop even lower towards $3,500 and $3,300—another reaction point.
An unexpected break above $3,900, reversing recent losses, will validate bulls from May 20.
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