Ethereum Price Dips to $3,494 amid Institutional Demand
Ethereum price has pulled back from its recent high near $3,860 due to profit-taking. However, institutional buying by SharpLink Gaming and BitMine Immersion—holders of over 660,000 ETH combined—continues to underpin market support.
Technical indicators highlight a key support at the 38.2% Fibonacci retracement near $3,494. A rebound here could drive Ethereum price toward $4,094. Conversely, a breach risks a decline to $3,381 (50% retracement) or $3,234 (20-day EMA).
On the four-hour chart, the flat 20-day EMA and neutral RSI signal equilibrium between bulls and bears. Traders need a close above $3,860 to reignite the rally toward $4,000. A break below the 50-day SMA near $3,477 may signal bearish momentum.
Crypto traders should monitor these support levels and market sentiment closely. Sustained institutional accumulation could preserve bullish momentum for Ethereum price in both the short and long term.
Bullish
In the short term, the pullback to the 38.2% Fibonacci retracement at $3,494 tests key support, which could attract bargain-hunting by institutional and retail traders, sustaining Ethereum price momentum. The flat 20-day EMA and neutral RSI indicate a balanced market, where a decisive break above $3,860 would likely trigger fresh buying toward $4,000. Conversely, a failure to hold support around $3,494 and the 50-day SMA at $3,477 could open the door to deeper corrections. However, significant institutional accumulation, as evidenced by SharpLink Gaming and BitMine Immersion’s combined 660,000 ETH holdings, underpins long-term bullish sentiment. Historical data suggests that such large-scale demand often precedes sustained rallies, making the overall outlook for Ethereum price bullish.