Key takeaways
- ETH fell 1.7% in the last 24 hours and is trading below $2,900.
- The coin could retest support at $2,749 if the bearish trend continues.
ETH slips below $2,900
The cryptocurrency market has turned bearish over the past three weeks despite a strong start to the year. After reaching $3,400 earlier this month, Ether has lost nearly 20% of its value over the last two weeks.
The recent downturn pushed ETH down 1.5% in the last 24 hours, briefly dipping below $2,800 on Sunday. It has since recovered slightly and is currently trading above $2,880.
The bearish pressure may persist as macroeconomic developments continue to influence the wider crypto market. The US government faces a potential shutdown as Democrats threatened to block funding for the Department of Homeland Security amid controversy over federal law enforcement actions.
The Federal Reserve will also release its first rate decision of 2026 soon. If the Fed keeps rates unchanged or raises them, Ether and other major cryptocurrencies could see further declines in the near term.
With gold and silver reaching new record highs in recent hours, leading cryptocurrencies like BTC and ETH may continue to underperform compared with traditional safe-haven assets.
Ethereum may drop to $2,749 support
The four-hour ETH/USD chart shows a bearish bias as Ether has posted recent losses. The leading altcoin closed a daily candle below $3,017 on Tuesday and lost 5.5% by Sunday.
At the time of writing, ETH is trading at $2,889, near the key support level at $2,749. If this support holds, ETH could rebound toward the daily pivot at $3,017.
Traders should exercise caution, however, as momentum indicators suggest bears are currently in control. MACD lines sit in negative territory while the RSI at 41 remains below the neutral 50 level.
Conversely, if Ether closes a daily candle below the $2,749 support, the correction could extend toward the November 21 low at $2,623.