Key Points
- ETH lost about 3.5% and could slip below $4,500.
- If ETH fails to bounce, the $4,350 support may become the next target.
ETH Falls Toward $4,500 as Market Opens Bearish
After a strong showing last week, the cryptocurrency market opened the new week on a bearish note. Market-leading Bitcoin eased about 1%, temporarily dipping below the $1.15 million market-cap threshold for the sector.
Ethereum, the leading altcoin and the second-largest cryptocurrency by market capitalization, experienced larger losses. The token fell roughly 3.5% over the past 24 hours and is currently trading near $4,510.
The pullback arrived ahead of the Federal Reserve’s key interest-rate decision later this week. ETH reached an all-time intraday high above $4,900 in August but failed to sustain upward momentum. It is about 9% below that peak, though a rebound could occur soon.
This week’s price action is likely to hinge on the Fed’s Wednesday decision. A rate cut would likely spark a rapid rally in BTC, ETH and other crypto assets in the near term.
Ethereum Bulls Still Target an All-Time High Near $50k
The ETH/USD four-hour chart remains constructive, suggesting that despite the recent dip buyers retain the upper hand. Momentum indicators also look supportive, with bulls still aiming for a new high.
Ethereum has temporarily found support near $4,488. The RSI sits around 60, indicating bullish sentiment on higher time frames. The MACD line remains in positive territory, reinforcing the upward bias.
If the $4,488 support holds, Ethereum could resume its ascent toward the prior high of $4,956. Continued bullish momentum would put ETH on track for an eventual challenge of the psychologically significant $50,000 level.
Conversely, failure to defend $4,488 could lead to a deeper pullback with $4,350 acting as the next critical support. That level also aligns with a four-hour trendline and could supply the liquidity needed for the next move.