Ethereum is holding above a critical support level as buyers attempt to prevent a deeper correction. While ETH has posted a modest daily gain, technical indicators suggest the recent bounce may be losing momentum.

At the time of writing, ETH is trading at $1,861.67, up 0.55% over the past 24 hours. The asset has recorded $21.41 billion in daily trading volume and maintains a market capitalization of $225.24 billion, indicating that investor interest remains active despite recent price swings. As the largest smart contract platform by market cap, Ethereum's price movements often reflect broader sentiment across decentralized finance and layer-1 blockchain assets.

Ethereum Price Faces Crucial Support Zone

Crypto analyst Ted stated on August 3, 2026, that Ethereum is currently testing an important support range between $1,800 and $1,850. According to Ted, this region could be a deciding factor in ETH's next directional move.

If ETH manages to hold above this support range, buyers may attempt to challenge the next resistance levels. Conversely, a strong breakdown below support increases the probability of a decline toward $1,700.

Support areas carry particular significance during periods of uncertainty, as they represent price levels where previous buyers entered the market. If this support zone is lost, additional selling pressure could emerge from short-term traders looking to exit positions.

Long-Term Ethereum Holder Sells After Years of Inactivity

Amid broader market activity, on-chain analytics platform Lookonchain reported that an early Ethereum holder resumed trading after nearly three years of dormancy.

An #Ethereum OG just sold 2,250 $ETH ($4.15M) after 3 years of inactivity. The OG bought the $ETH over 8 years ago at an average price of ~$489. pic.twitter.com/6S4hEE49iB — Lookonchain (@lookonchain) August 3, 2026

Specifically, the wallet sold 2,250 ETH for approximately $4.15 million after remaining inactive for several years. On-chain data shows the investor originally acquired Ethereum more than 8 years ago at roughly $489 per ETH. Even after this recent sale, the investor realized substantial gains relative to the initial acquisition cost.

Large transfers from long-dormant addresses often attract attention because they can contribute to short-term selling pressure and may influence market sentiment. Movements from wallets that have been inactive for years are particularly notable, as they sometimes reflect changing conviction among early participants who have held through multiple market cycles. However, a single transaction does not necessarily signal a broader trend.

Technical Indicators Show Buying Strength Is Slowing

Ethereum's technical indicators suggest the bullish momentum is weakening.

The Relative Strength Index (RSI) currently sits at 51.05, while its moving average reads 56.59. Although the RSI remains just above the 50 threshold, it has dropped below its signal line, indicating that buyer strength is diminishing even as the broader bearish trend remains unchanged. An RSI near 50 typically reflects a market in equilibrium, where neither buyers nor sellers hold a decisive advantage.

The Moving Average Convergence Divergence (MACD) also points to a slowdown in upward momentum. The MACD stands at 21.65, below the signal line of 31.30, with the histogram having declined to -9.65. This bearish crossover suggests selling-side pressure has intensified. Without an increase in buying pressure, ETH may trade sideways or move lower in the coming sessions.

What's Next for Ethereum?

The upcoming trading sessions will be pivotal in determining Ethereum's near-term trajectory. Buyers are expected to defend the $1,800 support region, while sellers will likely attempt to push below it. Investors will also be monitoring on-chain flows from long-term holders and large wallets, as concentrated activity from either group can amplify price movements in either direction.

If Ethereum maintains its position above support and buying volume increases, a recovery becomes possible. Should selling volume continue to rise alongside deteriorating technicals, Ethereum could decline toward $1,700.