Ethereum Faces Short-Term Pressure as ETH Eyes $3,500 Support

Ethereum has remained confined in a $4,200–$4,500 range for the past two weeks, showing signs of softening demand both from retail and institutional participants. The subdued trading environment has raised concerns that Ether could test lower support levels, with $3,500 emerging as a potential short-term floor.

Spot trading activity has slowed dramatically, with daily ETH volumes dropping from $18.5 billion in late August to just $2.6 billion in early September, signaling weaker investor participation and reduced conviction among traders. Net buying pressure, as measured by cumulative volume delta, has stabilized slightly but remains below the levels seen during the recent all-time high of $4,950, highlighting vulnerability in price momentum.

Institutional demand has also softened. Ethereum-focused ETFs have recorded over $1 billion in net outflows across consecutive trading sessions, intensifying downward pressure. Analysts point to symmetrical triangle patterns on the daily chart, suggesting that a close below $4,280 could accelerate a drop toward $3,500–$3,600, aligning with key liquidity clusters identified in recent market data.

Despite these short-term headwinds, the broader Ethereum market retains upside potential. If buying pressure stabilizes around the lower support range, Ether could rebound toward the upper range and eventually attempt new highs. Traders are closely watching the $3,500 zone as a decisive level that could shape market sentiment for the coming weeks.