Key takeaways
- ETH is trading above $3,300 after briefly falling to the $3,000 support level.
- The leading altcoin could recover toward $3,600 if market sentiment improves.
Ether slips to $3,000 then recovers above $3,300
Cryptocurrencies have started the month on a weak note, with many losing 10% or more in recent days. Ether, the largest altcoin by market capitalization, has fallen about 17% over the past week and briefly touched the $3,000 psychological level on Tuesday.
Since that dip, Ether has recovered and is trading above $3,300 per coin. The recent decline correlates with weaker institutional demand: data from SoSoValue show spot Ethereum ETFs experienced net outflows of $219.37 million on Tuesday. BlackRock’s ETHA led the outflows with roughly $111 million withdrawn, while Grayscale and Fidelity funds also reported net redemptions.
Ethereum may rebound to $3,600 after retesting key support
On the 4-hour chart, ETH/USD shows a bearish structure created by the sharp drop earlier in the week. Technical indicators remain negative despite today’s modest rebound.
Ether was rejected near $3,928 on Monday and fell about 15.7% the following day. At the time of writing, ETH trades around $3,347 after retesting the 50% Fibonacci retracement level near $3,171.
The RSI reading around 31 suggests Ether is in oversold territory and could see a healthy recovery from here. The MACD lines are also showing signs of improvement following the weekend’s bearish crossover.
If the $3,171 level holds as support, Ether could rally toward the $3,600 resistance in the near term. A stronger bullish move could push prices back toward Monday’s high near $3,900.
Conversely, a daily close below $3,171 would likely extend the bearish trend and expose the next significant daily support around $3,017.