Ethereum Market Faces Short-Term Bearish Surge Amid Volume Drop

I believe that Ethereum is currently experiencing a period of short-term bearish pressure, as indicated by its trading below $3,700 and the inability to reclaim key resistance at $3,860. Despite persistent attempts to recover, the market is showing signs of consolidation amid increased volatility. A notable indicator is the negative Ethereum Net Taker Volume of -$418.8 million, which suggests that sellers are dominating active market orders and pushing the price downward. This bearish signal, especially in futures markets, occurs after Ethereum recently reached a local high near $3,940. Such a sharp sell-off might be viewed as a temporary correction within a broader bullish trend supported by solid fundamentals, including rising institutional interest, network expansion, and ongoing adoption. The technical picture reveals lower highs and challenges in sustaining upward momentum, highlighting short-term weakness. However, the long-term outlook remains optimistic due to underlying structural growth factors. While the current selling pressure is worrisome and warrants caution, it does not Yet undermine Ethereum’s overall bullish prospects. Investors should monitor whether ETH can find support at key levels like $3,360 or $3,700, which could serve as potential rebound zones. Overall, I see this as a healthy consolidation phase before the next significant rally, provided broader market conditions continue to favor Ethereum’s fundamentals.