Ethereum dropped from $3,871 to $3,420 this week and reached a major Fibonacci retracement level at $3,726
The $3,726 level is based on the 0.786 retracement of the entire move from the 2021 high to the 2022 low
Market watchers now wait to see if this support zone holds or breaks and leads to lower price direction next week
Ethereum (ETH) is undergoing a pivotal technical test this week as it approaches the 0.786 Fibonacci retracement level near $3,726. On August 2, 2025, ETH closed at $3,420, having dropped 12.23% from its weekly high of $3,871. With market participants watching closely, the next move could shape Ethereum’s medium-term trajectory.
https://twitter.com/cantonmeow/status/1951773932513853753
The current zone marks a critical level, derived from the major Fibonacci retracement drawn from the 2021 high to the 2022 low. The 0.786 Fibonacci level—at $3,726—has historically acted as a key inflection point in volatile markets. As ETH tests this zone again, traders are analyzing if it will serve as strong support or simply a temporary pause.
This retracement aligns with macro resistance levels last seen in early 2022. Weekly momentum will be critical in defining investor sentiment going forward.
Fibonacci Zones Define Structure of ETH Price Action
Ethereum’s recent rally pushed prices near the 0.886 Fibonacci level, which sits at $4,066. This level acted as a ceiling before sellers returned. The weekly chart, shared by user “Cantonese Cat” on X (formerly Twitter), marks a pullback from that zone.
The chart spans a three-year period from 2021 to 2025, showing historical reactions to each retracement level. Between $3,726 and $3,871, Ethereum struggled to maintain bullish strength, leading to this week’s red candle.
Past retracement cycles show that a failure to hold the 0.786 zone may push ETH toward the next support at 0.618—located at $2,532. Traders are evaluating this Fibonacci map to align with historical trend reversals and current market psychology.
Volume data is not displayed in the image, but price structure alone reveals clear horizontal resistance and support. The clustering of candles around $3,726 underscores the market’s hesitation at this inflection zone.
Market Participants Gauge Support Strength at $3,726
Cantonese Cat, a respected chart analyst on X, questioned the strength of the current support, stating, “Not sure if it’s good support.” Despite the uncertainty, the post suggests that this test may be part of a “healthy” technical structure.
The tweet posted on August 3, 2025, reached over 10,000 views within hours, reflecting heightened trader interest. The language used was cautious, but pointed toward the significance of the 0.786 Fibonacci mark.
Community responses showed a mixed tone. One user asked, “Where did all the bulls go?” while another wrote, “Strong support being tested.” This signals that market consensus has yet to form clearly, with volatility dictating sentiment shifts.
Some traders viewed this decline as a normal retracement following a strong multi-week rally. Others warned that a clean break below $3,726 could open downside risk toward the $3,200s and below.
Will $3,726 Hold as the Weekly Anchor or Break Under Pressure?
The central question now surfaces: will $3,726 become Ethereum’s anchor or give way to further selling pressure?
If price closes the weekly candle below this level, it could confirm a shift in trend structure. On the other hand, a strong bounce from this Fibonacci zone could spark renewed bullish interest. Either outcome will provide key data for Ethereum’s broader market direction over the coming weeks.
