Ethereum Price Drops 8%, But Long-Term Sentiment Remains Positive with $3,400 Target

Highlights:

• Ethereum price drops 8% to $3,064 due to long liquidations.
• Ethereum Foundation sells 300 ETH despite Vitalik’s earlier stance.
• Institutional interest grows, with potential ETH ETFs and notable figures exploring Ethereum

The Ethereum price has slumped 8% in the last 24 hours to trade at $3,064 as of 5 a.m. EST on a 142% pump in trading volume to $26 billion. This price drop comes as Ethereum recently experienced a large long liquidation worth $5,115 at $3,171.39, triggering the closure of leveraged positions. These liquidations occur when investors who bet on rising prices are forced to sell, adding pressure on the market and lowering prices.

Additionally, according to Onchain Lens, the Ethereum Foundation sold 100 ETH at an average price of $3,078.93 in exchange for 307,893 DAI. The Foundation has sold 300 ETH, even though Vitalik had previously stated he would consider using staking or DeFi income rather than selling ETH.

Just in: #Ethereum Foundation has sold 100 $ETH for 307,893 $DAI at a price of $3,078.93

In 2025 they have sold a total of 300 $ETH for 980,388 $DAI

Address: 0xd779332c5a52566dada11a075a735b18daa6c1f4https://t.co/AIA1JjCGzW

Data @nansen_ai pic.twitter.com/4bHhtyZFtw

— Onchain Lens (@OnchainLens) January 27, 2025

Meanwhile, Ethereum continues to draw institutional attention, with potential ETH ETFs and the Trump family exploring Ethereum-based businesses. Though this is a short-term immediate reaction and could see a rebound if buyers become active, some key support levels will ensure a buying opportunity if the price stabilizes around them. In the longer term, the outlook remains positive, with the token gaining more interest and reflecting strong technical signals.

ETH Statistics

• Ethereum Price: $3,064
• Market Capitalization: $369 billion
• Trading volume: $26 billion
• Circulating Supply: 120 million
• Total Supply: 120 million

Ethereum Price Could Rebound Within the Wedge

The ETH/USD 4-hour chart is an ascending wedge; the upper boundary converges. Generally, a wedge of this type points toward bearish continuations, with any break beneath it potentially turning into a downside move.

The price currently is at $3,061.92, and resistance in a critical support area is found to be from $3,000 to $3,100. Holding above this level is important for the bulls to retain the upper hand, as a breakdown below it might have triggered further declines.

On the upside, the key resistance lies at the upper boundary of the wedge, around $3,300–$3,350. A breakout above this level would invalidate the bearish pattern and could potentially lead to a rally toward $3,400 or higher.

The chart further illustrates the key moving averages, where the 50-day MA rests at $3,287, and the 200-day MA rests at $3,359. There is a visible bearish crossover, meaning the price has superficial weakness in the short run. It can enter positive momentum on its recovery above these levels. The RSI is 28.85, which shows that the asset is in an oversold zone. This may lead to a short-term bounce if buying pressure advances.

In addition, the MACD indicator reflects bearish momentum as the MACD line is below the signal line, and the histogram is below zero. A decline in bearish momentum could be a point of reversal.

Bulls Eyeing a Push to $3,400 in the Short Term

If the Ethereum price breaks below the wedge, the first downside target would be the psychological level of $3,000, with further declines extending toward $2,800. On the other hand, if the price holds and rebounds from this support, it could target $3,400 or beyond. The next move will probably be determined by whether the price breaks out of the wedge or falls below its support, with indicators like volume, RSI, and MACD confirming it.