The cryptocurrency market is pulling back after a sharp rally over the last few days, with several coins losing more than 1% of their value.
The market showed strong momentum late last week and through the weekend. Bitcoin rose above the $45,000 resistance and briefly traded above $47,000 in recent sessions. It is currently down about 0.39% but remains above the $47,000 level.
Ether also delivered notable gains, breaking the $3,000 barrier and trading above $3,200. Other major cryptocurrencies enjoyed bullish performance as well, with many rising more than 6% during that period.
After these advances the market is now retracing. Most altcoins have fallen over the past 24 hours and many are down by more than 1%; further declines are possible in the near term.
Ether price outlook
The ETH/USD 4-hour chart still displays a bullish bias following recent strength. The MACD line remains in bullish territory, while the RSI near 58 indicates momentum is closer to overbought than oversold.
Ether was unable to hold above the $3,418 pivot and slipped below the 23.6% Fibonacci level at $3,369 a few hours ago. The first key support at $3,346 is now active, and ETH could break beneath this level in the short term.
ETH/USD 4-hour chart. Source: TradingView
If selling pressure persists, bulls will need to defend the second major support at $3,272. Barring a stronger bearish shift, Ether should avoid slipping below the $3,100 area in the coming hours.
On the upside, a recovery back toward the $3,418 pivot would give ETH a chance to challenge the first major resistance at $3,492. Continued market-wide support could propel Ether to test the next resistance level at $3,563 before the end of the day.
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