Key takeaways
- ETH is trading above $3,300 after briefly dipping to the $3,000 support level on Monday.
- The leading altcoin could rebound to above $3,600 if market sentiment improves.
Ether falls to $3,000, recovers to $3,300
The month has started with losses across the crypto market, with many assets losing 10% or more in recent days. Ether, the largest altcoin by market capitalization, slid 17% over the past seven days and briefly fell to the psychological $3,000 level on Tuesday.
It has since recovered and is trading above $3,300 per coin. The downward move occurred amid a pullback in institutional demand. According to SoSoValue, net outflows from Ethereum spot ETFs amounted to $219.37 million on Tuesday. The biggest outflow was from BlackRock’s ETHA, which reported a net outflow of $111 million. Grayscale and Fidelity products also recorded outflows.
Ethereum could rise to $3,600 after retesting key support
The ETH/USD 4-hour chart looks bearish and weakened after yesterday’s sharp market drop. Technical indicators remain tilted to the downside despite a modest recovery so far today.
Ether was rejected at Monday’s high of $3,928 and fell 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.
An RSI reading of 31 indicates Ether is in oversold territory and could post a healthy rebound from here. MACD lines are also improving after last week’s bearish crossover.
If $3,171 holds as support, the leading altcoin may move toward the $3,600 resistance level in the near term. With a sustained bullish trend, Ether could target Monday’s peak near $3,900.
However, if ETH closes daily below $3,171, the downtrend could continue and push the price toward the next daily support at $3,017.