Ether could rebound to $3,600 after testing key level; Check forecast
Ethereum (ETH) is currently trading above $3,300 after a bearish start to the month, having dropped to $3,000 earlier this week. The leading altcoin is down 17% over the past seven days, with market trends reflecting declining institutional demand as Ethereum ETFs reported net outflows of $219.37 million, including $111 million from BlackRock's fund. Despite the downturn, technical indicators suggest a potential recovery towards the $3,600 resistance level if the $3,171 support holds. A bullish rally could recapture Monday's high of $3,900, while a daily close below $3,171 could extend the bearish trend.
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Current ETH Price Overview
ETH is currently trading above $3,300, recovering from a drop to the $3,000 support level earlier this week. The leading altcoin shows signs of a possible rebound if overall market trends improve, with potential targets above $3,600.
Market Conditions and Recent Decline
It has been a bearish start to the month for cryptocurrencies. Over the last few days, most major coins have lost 10% or more of their value. Ether, the leading altcoin by market cap, has declined by 17% in the past seven days, briefly touching the psychological support level of $3,000 before recovering to $3,300.
The decline is driven partly by weakening institutional interest. Notably, spot Ethereum ETFs saw $219.37 million in net outflows on Tuesday, with BlackRock’s ETHA leading the losses at $111 million in outflows. Funds managed by Grayscale and Fidelity also reported significant outflows.
Technical Analysis of ETH/USD
The ETH/USD 4-hour chart remains bearish, reflecting the sharp decline in the market earlier this week. Technical indicators point to ongoing pressure despite a minor pullback:
- Price rejection occurred at a high of $3,928 on Monday, leading to a 15.73% drop the following day.
- At press time, ETH trades at $3,347, having retested the 50% retracement level of $3,171.
- The Relative Strength Index (RSI) sits at 31, signaling an oversold zone which could indicate potential gains.
- The MACD lines show improvement after a bearish weekend crossover, hinting at growing bullish momentum.
Key Support and Resistance Levels
If the $3,171 support level holds, ETH could rally toward the $3,600 resistance level. A further bullish trend might even push the price to recapture the recent high of $3,900 set on Monday. However, a daily candle close below $3,171 would signal continued bearish momentum, pushing ETH down to the next support level of $3,017.