Key Takeaways
- Ether fell below $3,400 over the weekend amid weak broader market performance.
- The coin is now trading above $3,500 and could rise toward the $3,700 resistance level soon.
Ether rebounds after weekend sell-off
Ether, like the wider cryptocurrency market, underperformed last week. The second-largest cryptocurrency by market capitalization lost roughly 8% over the past seven days, dropping to a low of $3,359 on Saturday.
The weak performance stemmed from several macroeconomic factors. The Federal Reserve left interest rates unchanged, and the Fed chair signaled uncertainty about a rate cut in September.
Nonfarm payrolls also came in weaker than expected, suggesting U.S. economic growth is slowing more than anticipated. In addition, markets reacted negatively to renewed tariff discussions.
These macro developments led to outflows exceeding $200 million from Ethereum ETFs, pushing Ether below the $3,400 mark.
Despite the pullback, the market appears to be in a corrective phase and could resume an upward trend if conditions remain positive.
ETH targets $3,700 resistance
The 4-hour ETH/USD chart turned bearish after Ethereum closed below the daily support at $3,730 over the weekend. The rebound above $3,500 indicates Ether found support near its 78.6% Fibonacci retracement at $3,392. At the time of writing, Ether is continuing its recovery and trading above $3,500.
Technical indicators are recovering from the weekend lows. The 4-hour RSI sits around 49 after bouncing off the neutral 50 level on Saturday and is now pointing upward, suggesting bullish momentum is gaining strength. MACD lines are also poised to shift into bullish territory soon.
If ETH maintains its recovery, it could extend the rally and reclaim the $3,730 resistance level. A sustained upside move would open the path toward the monthly high of $3,931.
Conversely, if ETH faces another correction, it could decline further and retest key support around $3,170. Bulls are currently defending the support zone near $3,300.