Key takeaways
- ETH fell about 1% in the past 24 hours and is currently trading below $3,200.
- The coin could rally above $3,500 if the daily candle closes above $3,100.
ETH nears $3,200 as markets pause for breath
Cryptocurrency markets have turned markedly bearish since the start of the month, with Bitcoin giving up a key psychological level. Bitcoin slid to a six‑month low near $93,000 on Sunday, and many altcoins suffered sharp losses alongside it.
Ether, the second‑largest cryptocurrency by market capitalization, is trading below $3,200 after retesting the $3,000 support level over the weekend. The token has lost roughly 11% of its value in the past seven days, marking a third consecutive weekly decline for the asset.
Ether’s weak performance mirrors the broader crypto market, where tighter liquidity measures from the Federal Reserve have weighed on risk assets. Still, some analysts expect conditions to improve in the near term.
Derek Lim, head of research at Caladan, told The Block:
In my view, the primary market driver remains liquidity. Liquidity is (and will be) temporarily tight as the U.S. government shutdown has kept general treasury accounts elevated.
Ether’s trajectory over the coming days will likely hinge on whether it can hold the psychological and technical $3,000 support level.
Ethereum could recover if the $3,000 support holds
The daily ETH/USD chart looks bearish and efficient, reflecting seven days of losses for Ether. The token encountered rejection at a previously breached trendline near $3,592 last week and has dropped about 12% since then. At the time of writing, ETH trades around $3,192 per coin.
If the $3,017 support level holds, Ether could extend its recovery and attempt a rally toward the main resistance area around $3,592. Similar to Bitcoin, Ether’s RSI has bounced from oversold territory, suggesting bearish momentum may be waning.
Conversely, a daily close below $3,017 would open the door to further downside, with the next significant support around $2,749.