The cryptocurrency market is undergoing a correction after a strong rally in recent days, with several coins losing more than 1% of their value.
The crypto market delivered impressive gains over the past few days. Bitcoin finally cleared the $45,000 resistance and climbed above $47,000. It has since pulled back by about 0.39% but still trades above $47,000.
Ether also posted strong performance recently, breaking the $3,000 barrier and rising above $3,200. Other leading cryptocurrencies likewise benefited from the rally, with many gaining over 6% during that period.
However, the market is now retracing following the recent surge, and most altcoins have lost more than 1% over the past 24 hours. Further declines are possible in the coming hours.
Ether Price Outlook
The 4-hour ETH/USD chart remains bullish after Ether’s recent gains. The MACD line currently sits in bullish territory, while the RSI, around 58, indicates a tilt toward the overbought region rather than oversold.
Ether failed to hold above the $3,418 pivot and fell below the 23.6% Fibonacci level at $3,369 a few hours ago. The first key support is now at $3,346, and ETH could slip below that level in the next minutes or hours if selling pressure persists.
ETH/USD 4-hour chart. Source: TradingView
Should selling intensify, bulls will need to defend the next significant support near $3,272. Nonetheless, Ether is expected to hold above $3,100 in the near term unless bearish sentiment strengthens considerably.
On the upside, if ETH regains $3,418, it could challenge the first major resistance at $3,492 in the coming hours. If the market launches another rally, ETH may test the second primary resistance level at $3,563 before the end of the day.