Ethereum's current price hovers around $3,170, repeatedly testing this level, with a 24-hour decline of about 4%. The support zone has been effectively broken. In the short term, a technical correction is inevitable, but the underlying logic behind this decline has not changed—institutions' long-term outlook for ETH remains stable.

From a technical perspective, the support line at $3,180-$3,200 has been lost and has now become a resistance level. Although the daily chart appears weak, the ongoing optimization of core technologies like zkEVM and the improvement of the staking ecosystem support the fundamentals. In the short term, resistance is at $3,180-$3,200, with a stronger resistance at $3,220-$3,250; short-term support below is in the $3,100-$3,130 range, with a key defense line at $3,000-$3,070.

This decline is actually linked to Bitcoin's correlation, representing a normal profit-taking correction. Looking ahead, 2026 holds many points of interest for Ethereum—an increase in staking will ease selling pressure, institutional funds are gradually entering, technological upgrades continue, and the RWA (Real World Assets) sector is heating up. However, the key focus now is on this week's macroeconomic data: Thursday's US CPI inflation report and Friday's non-farm payrolls data, both of which will directly influence the Federal Reserve's policy direction and subsequently determine the rhythm of the crypto market.

Operationally, until ETH stabilizes above $3,180, it’s advisable to mainly follow the trend and short. If there is a rebound to $3,180-$3,200, consider small short positions with a stop-loss above $3,220. Conversely, if a rebound signals stabilization in the $3,100-$3,070 range, consider small long positions for a bounce, with a stop-loss below $3,000.