Recently, the Ethereum market has shown a significant downward trend, attracting widespread attention from investors. From a technical perspective, the price of ETH has fallen below several important moving average supports, with the daily chart presenting consecutive bearish candles, while the 4-hour chart shows a stepped decline. The important psychological level of 3,400 USD has been breached, and currently, 3,320 USD serves as the last line of defense. If this level is broken, it may trigger a large-scale forced liquidation of long positions.

On-chain data is also transmitting negative signals. Major exchanges are experiencing a negative premium on ETH, and some large institutional investors have begun to sell off in large quantities. At the same time, retail investors are also showing obvious panic, with a sharp increase in the selling volume of short-term holders, and a significant decrease in net outflows from exchanges. These signs indicate that the market may be undergoing a round of 'capitulation selling'.

Currently, the price of ETH is hovering around $3,335, with a 24-hour fall of 5.8%. Market participants generally believe that unless it can firmly settle above $3,320 accompanied by a significant increase in trading volume, it will be difficult to see a significant rebound in the short term.

It is worth noting that the trends in the US stock market may have an impact on the cryptocurrency market. If the Nasdaq index experiences a significant fall, ETH may face an additional drop of 3-5%.

In the current market environment, investors should remain cautious and closely monitor changes in various technical indicators and on-chain data. At the same time, it is also important to pay attention to broader economic factors, such as the Federal Reserve's interest rate decisions, as these may have a significant impact on the cryptocurrency market.