Important points
- ETH is trading above $3,300 after falling to the $3,000 support level on Monday.
- If market trends improve, major altcoins could rise above $3,600.
Ether falls to $3,000, recovers to $3,300
This month has been off to a bearish start for cryptocurrencies, with most cryptocurrencies losing more than 10% of their value in the past few days. Ether, the top altcoin by market capitalization, has fallen 17% in the past seven days, at one point dropping to a psychological level of $3,000 on Tuesday.
However, it has now recovered and is currently trading above $3,300 per coin. Business performance has been sluggish as demand from institutional investors in the market has declined. According to SoSoValue, the Spot Ethereum ETF recorded net outflows of $219.37 million on Tuesday. The biggest loser was BlackRock’s ETHA, with net outflows of $111 million. Grayscale and Fidelity funds also reported outflows.
Ethereum Could Recover to $3,600 After Retesting Major Support
Due to yesterday’s market selloff, the ETH/USD 4-hour chart is bearish and inefficient. Despite the slight pullback recorded so far today, technical indicators remain bearish.
Ether price faced a rebound from Monday’s high of $3,928, dropping 15.73% the following day. At the time of writing, ETH is trading at $3,347 after retesting the 50% retracement level at $3,171.
31 on the RSI indicates that Ether is currently in oversold territory and could post a healthy rally from here. The MACD line is also improving following the weekend’s bearish crossover.
If $3,171 continues to hold as support, the major altcoin could move towards the $3,600 resistance level in the near term. If the bullish development continues, Ether could regain Monday’s high of $3,900.
However, if the ETH daily candlestick closes below $3,171, the bearish trend could continue and the ETH price could head towards the next daily support at $3,017.
ethereum price Author: TradingView
