ETH briefly drops below $3200, but the weekly increase approaches 9%. Is the market adjusting or turning?

According to the latest news, ETH/USDT is currently trading at $3196.05, down 0.58% over the past 24 hours. Although it briefly broke below the $3200 psychological level in the short term, from a longer-term perspective, Ethereum’s performance is far from as weak as it appears. What does this reflect?

Price Performance Across Multiple Timeframes

In different time cycles, ETH shows a clear divergence:

This “short-term weakness, long-term strength” pattern is common in crypto markets, indicating that the current short-term correction is likely just a pullback within a medium-term upward trend.

Market Fundamentals Remain Steady

From market performance, ETH’s fundamentals show no signs of deterioration:

• Market cap remains at $39.105 billion, accounting for 12.34% of the total market
• 24-hour trading volume is $2.668 billion, up 26.48% from the previous day
• Circulating supply and total supply are both 120,694,829 ETH

The increase in trading volume is an interesting signal. Typically, during corrections, rising volume suggests increased market participation rather than participants fleeing.

Key Observations

The Technical Significance of $3200

The $3200 level is an important support for ETH. A short-term break below might trigger some stop-losses on technical grounds, but considering the nearly 9% gain over 7 days, this looks more like a normal retracement within an upward move rather than a trend reversal signal.

The Mid-term Uptrend Continues

Data showing an 8.79% increase over 7 days and 4.03% over 30 days indicates that Ethereum is in a clear upward channel from late 2025 to early 2026. The short-term breach of $3200 could even present a buying opportunity for medium-term investors.

Summary

While ETH’s short-term dip below $3200 is indeed a negative signal, from a broader timeframe, it appears to be a normal correction within an ongoing medium-term uptrend rather than a trend reversal. The key is whether it can hold lower support levels moving forward. The rising trading volume also suggests participation remains strong, which is important for validating the sustainability of a rebound. Short-term traders should monitor whether support levels hold, while medium-term investors might see this as a good entry point.