Dynamo fans disrupted a second round Cup match at Hanover 96 on October 31, having been warned last season of a possible ban after similar incidents in an away tie with Borussia Dortmund.
"The sanction against Dresden must be viewed in the context of the numerous, previous incidents and the size of the clashes in their Cup tie against Hanover," Hans Lorenz, head of the DFB's sports court said.
"Such stadium attacks are attacks on football and need respective sanctions. The DFB sports court had clearly warned them (Dresden) after last year's incidents."
Hanover, who won the second round tie on penalties, were fined 70,000 euros for their fans' involvement in incidents before during and after the game but escaped any further sanctions due to a better fan record.
Dresden supporters forced their way into the stadium, lit flares and stormed the pitch during and after the game.
German football officials have been alarmed by a sharp rise in violence and the German football league (DFL) is scheduled to vote on new security measures on December 12.