Ether could rebound to $3,600 after testing key level; Check forecast

Key takeaways

• ETH is trading above $3,300 after dropping to the $3k support level on Monday.
• The leading altcoin could recover above $3,600 if the market trend improves.

Ether slips to $3k, recovers to $3,300

It has been a bearish start to the month for cryptocurrencies, with most of them losing 10% or more of their value over the last few days. Ether, the leading altcoin by market cap, is down 17% in the last seven days and temporarily dropped to the $3k psychological level on Tuesday.

However, it has now recovered and is currently trading above $3,300 per coin. The bearish performance comes amid declining institutional demand in the market. According to SoSoValue, spot Ethereum ETFs posted net outflows of $219.37 million on Tuesday. The biggest loser was BlackRock’s ETHA, posting $111 million in net outflows. Funds from Grayscale and Fidelity also reported outflows.&

Ethereum could rebound to $3,600 after retesting key support

The ETH/USD 4-hour chart is bearish and inefficient, caused by yesterday’s sharp decline in the market. The technical indicators remain bearish despite the slight pullback recorded so far today.&

Ether’s price faced rejection from the high of $3,928 on Monday and declined by 15.73% the next day. At press time, ETH is trading at $3,347 after retesting the 50% retracement level at $3,171.

The RSI of 31 shows that Ether is currently in the oversold region and could record a healthy gain from here. The MACD lines are also improving following the bearish crossover during the weekend.

If the $3,171 continues to hold as support, the leading altcoin could rally towards the $3,600 resistance level in the near term. An extended bullish run would see Ether recapture the Monday high of $3,900.&

However, if ETH’s daily candle closes below $3,171, the bearish trend could continue and push ETH’s price towards the next daily support at $3,017.

The post Ether could rebound to $3,600 after testing key level; Check forecast appeared first on CoinJournal.

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