Key takeaways
- ETH is trading above $3,300 after dropping to the $3k support level on Monday.
- The leading altcoin could recover above $3,600 if the market trend improves.
Ether slips to $3k, recovers to $3,300
It has been a bearish start to the month for cryptocurrencies, with most of them losing 10% or more of their value over the last few days. Ether, the leading altcoin by market cap, is down 17% in the last seven days and temporarily dropped to the $3k psychological level on Tuesday.
However, it has now recovered and is currently trading above $3,300 per coin. The bearish performance comes amid declining institutional demand in the market. According to SoSoValue, spot Ethereum ETFs posted net outflows of $219.37 million on Tuesday. The biggest loser was BlackRock’s ETHA, posting $111 million in net outflows. Funds from Grayscale and Fidelity also reported outflows.
Ethereum could rebound to $3,600 after retesting key support
The ETH/USD 4-hour chart is bearish and inefficient, caused by yesterday’s sharp decline in the market. The technical indicators remain bearish despite the slight pullback recorded so far today.
Ether’s price faced rejection from the high of $3,928 on Monday and declined by 15.73% the next day. At press time, ETH is trading at $3,347 after retesting the 50% retracement level at $3,171.
The RSI of 31 shows that Ether is currently in the oversold region and could record a healthy gain from here. The MACD lines are also improving following the bearish crossover during the weekend.
If the $3,171 continues to hold as support, the leading altcoin could rally towards the $3,600 resistance level in the near term. An extended bullish run would see Ether recapture the Monday high of $3,900.
However, if ETH’s daily candle closes below $3,171, the bearish trend could continue and push ETH’s price towards the next daily support at $3,017.
Ethereum price by TradingView
