Key insights
- ETH fell 4.5% in the last 24 hours and is now trading below $3,900.
- The leading altcoin could drop below $3,700 if bullish momentum fails to strengthen.
ETH slips below $3,900
The crypto market resumed its bearish trend after posting gains on Monday. Ether, the second-largest cryptocurrency by market capitalization, declined about 4.5% over the past 24 hours and is once again trading below the $3,900 level.
The downturn comes amid an ongoing trade tension between the United States and China that continues to influence financial markets. U.S. President Trump is expected to meet Chinese leader Xi Jinping later this month, and trade friction is likely to remain a market driver before and after that meeting.
Jeff Mei, chief operating officer of BTSE, commented on current market conditions, saying:
“We believe macroeconomic concerns are driving daily market moves. Volatility will persist as long as trade tensions between the U.S. and China persist. Even if they reach an agreement at the end of the month and markets rebound, it is unlikely that tensions will completely disappear.”
ETH could slide below $3,700
The 4-hour ETH/USD chart looks bearish and decisive, reflecting Ether’s recent underperformance. The coin lost roughly 4% of its value in the last day and is trading under $3,900 per coin.
Momentum indicators show bearish signals, suggesting selling pressure across the market. The RSI around 52 points to weakening bullish momentum, and an RSI moving below the neutral zone would further indicate short-term control by sellers.
If the bearish trend continues, ETH could fall below Friday’s low near $3,700 and retest the $3,499 low set two weeks ago. The $3,499 support level is likely to hold in the near term, which could give ETH a base to move higher.
If bulls regain control, ETH may climb toward the $4,300 level in the coming hours. A sustained rally could see Ether reclaim the key psychological resistance around $4,533.