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Ether is struggling to retain its footing in the market, as its long-term chart confirmed a major bearish signal. 
<h2 data-ct-non-breakable="true" id="eth-price-dives-below-key-trendline">ETH price dives below key trendline</h2>
ETH’s daily candle closed under the 200-day moving average (200-DMA), a move wit a history of preceding corrections. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/ab5defd3-75ef-40a2-b5a2-6cfe30948818.png" alt="Is Ethereum price about to go under $3K?" title="">
 <figcaption style="text-align: center;">
 ETH/USD on 1-day chart. Source: Trading View
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On the contrary, spot Ether ETFs <a href="https://cointelegraph.com/news/ethereum-etf-flows-positive-grayscale-ethe-outflows-top-2-billion">posted</a> a net inflow of $26.7 million on Aug. 1, offering a minor glimmer of hope to the ecosystem. 
<h2 data-ct-non-breakable="true" id="ethereum-fees-have-plummeted-since-march">Ethereum fees have plummeted since March</h2>
During the first quarter of 2024, Ethereum generated&nbsp;average daily fees of over $10 million, the latest onchain <a href="https://tokenterminal.com/terminal/projects/ethereum?v=NjQyMGRm" target="_blank" rel="noopener nofollow">data</a> shows. In March 2024, the average was as high as $15 million daily. However, since Q2, the average annualized fee has dropped to roughly $3.5 million, with July’s total revenue averaging under $3 million. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/fb1c72ac-a842-4620-8957-5e5b44ec1c41.png" alt="Is Ethereum price about to go under $3K?" title="">
 <figcaption style="text-align: center;">
 Ethereum daily fees and active users (weekly) chart. Source: Token Terminal
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Weekly active users have been relatively stable over the past six months. Yet, the month-on-month drop in annualized fees for Ethereum is 39%. 
Related: <a href="https://cointelegraph.com/news/what-needs-to-happen-for-ethereum-eth-price-to-reach-4k">What needs to happen for Ethereum (ETH) price to reach $4K?</a>
This has largely panned out due to the relative decline in total value locked, or TVL, for ETH since May, reflecting a drop in DeFi activity. Over $10 billion in value has been wiped out since June 7, <a href="https://defillama.com/chain/Ethereum" target="_blank" rel="noopener nofollow">data</a> from DefiLlama shows. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/8ad10400-348e-4050-945d-b80326756097.png" alt="Is Ethereum price about to go under $3K?" title="">
 <figcaption style="text-align: center;">
 Ethereum TVL chart. Source: defillama
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<h2 data-ct-non-breakable="true" id="ether-s-price-support-is-at-2-700-but-will-it-hold">Ether’s price support is at $2,700, but will it hold?&nbsp;</h2>
<a href="https://www.intotheblock.com/market-intelligence" target="_blank" rel="noopener nofollow">Data</a> from IntoTheBlock indicates that roughly 3.69 million addresses hold 1.24 million ETH, around $3,000. This particular price point marks Ether’s immediate and psychological support. 
However, it is relatively weak compared to the critical support at $2,700. At this range, 11.11 million addresses hold a whopping 59.07 million ETH, acquired at an average of $2,647. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/bc60e150-a678-402d-b356-3062d016ec6a.png" alt="Is Ethereum price about to go under $3K?" title="">
 <figcaption style="text-align: center;">
 Ethereum addressesing holding ETH. Source: intotheblock
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This level was also successfully tested as support several times in early July. Poseidon, a crypto trader, <a href="https://x.com/CryptoPoseidonn/status/1818904024277471376" target="_blank" rel="noopener nofollow">argues</a> that this range might not hold upon another retest:
<blockquote data-ct-non-breakable="true">
 “It was a bearish retest indeed. It looks awful in the lower time frame. I don’t see any reason why we shouldn’t go below $2700. Patience.”
</blockquote>
Chart technicals, however, show that ETH has bounced back almost immediately each time it has deviated under $3,000 over the past three months, suggesting strong demand in this area. 
As observed in the chart, equal lows are formed around $2,700. Drawing confluence with the above inputs and another potential bounce at $2,650–$2,700 is certainly possible.&nbsp;
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/6b69be7c-09f0-426b-9890-0fc3254c9662.png" alt="Is Ethereum price about to go under $3K?" title="">
 <figcaption style="text-align: center;">
 ETH/USD 1-day chart. Source: Trading View
 </figcaption>
</figure>
Thus, it should not come as a big surprise if Ether quickly bounces from under $3,000 once again. The bidding range offers a newer dynamic and change in market structure, but more consolidation at current levels may see the ETH price undergo a reversal from its previous equal lows.&nbsp;
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Is Ethereum price about to go under $3K?

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