Ethereum confirmed a break below the key psychological and technical threshold of $2,900 today. This is not only a price correction but also indicates that the progressive recovery structure built since December last year faces the risk of failure. Analysts categorize this decline as a "distribution" rather than a "shakeout," indicating sustained and resolute selling pressure at the key resistance level (around $3,220).

Current technical outlook:
Resistance and Support: With the price falling below the main resistance, the $3,170-$3,200 zone has shifted from support to strong resistance. Attention should be paid to the recent support zone of $2,850-$2,900; if this level is broken, the price could decline to $2,623 or even deeper support areas.
Market Sentiment: Momentum indicators show market fatigue, with weak rebound volume and a lack of strong buying confirmation. The market has shifted from a "rebuilding structure" phase to a "loss control" phase. Bulls need to quickly push the price back above $3,000 and stabilize it to offset the negative technical impact of this breakdown. However, even if the level is reclaimed, without volume support, any rebound may be viewed as an opportunity to reduce positions.