Could Ethereum's Decline Worsen Amid Growing Banking Concerns?

Current Market Sentiment: Ethereum's price has dropped 3.13% to around $3825 due to renewed fears of financial instability linked to regional bank stress and credit losses, prompting investors to move capital from riskier assets like crypto to safer options.

Technical Analysis: The ETH/USD daily chart indicates a bearish trend, with immediate support at 3750 and potential further decline to the 3400-3500 range if banking issues worsen; a recovery above 4100 is needed to shift the current negative bias.

Impact of Banking Sector: The recent fraud revelations and loan write-offs in the banking sector are tightening liquidity, which historically leads to increased volatility in crypto markets, as traders react to financial uncertainty.

Future Outlook: In the short term, Ethereum is expected to trade between 3750 and 4100 with a negative bias; if banking fears escalate, it may retest lower levels, while its long-term fundamentals remain intact despite current liquidity challenges.