Ether eyes $3,500 if support levels hold; Check forecast

Key takeaways

ETH is down 1% within the final 24 hours and is now buying and selling under $3,200.
The coin might rally above $3,500 if the each day candle closes above $3,100.

ETH approaches $3,200 as market takes a breather

The cryptocurrency market has been extraordinarily bearish for the reason that begin of the month, with Bitcoin shedding a key psychological stage. Bitcoin dumped to a six-month low of $93k on Sunday, with altcoins additionally recording large losses.

Ether, the second-largest cryptocurrency by market cap, is buying and selling under $3,200 after retesting the $3k assist stage in the course of the weekend. The coin has misplaced 11% of its worth within the final seven days, signifying the third consecutive week of losses for the second-largest cryptocurrency by market cap.

Ether’s poor efficiency aligns with the broader crypto market, with liquidity tightening measures by the Federal Reserve affecting risk-based property. Nevertheless, analysts are assured that the crypto market will flip issues round within the close to time period.

Derek Lim, analysis lead at Caladan, advised The Block that,

For my part, the first market driver stays liquidity. Liquidity is (and might be) briefly tight because the U.S. authorities shutdown has stored the treasury normal account elevated.

Ether’s efficiency over the subsequent few days will possible rely on whether or not it continues to defend the $3k psychological and assist stage. 

Ethereum might recuperate if the $3k assist stage holds

The ETH/USD each day chart is bearish and environment friendly as Ether has underperformed over the past seven days. The coin confronted rejection on the earlier damaged trendline round $3,592 final week and has misplaced 12% of its worth since then. At press time, ETH is buying and selling at $3,192 per coin. 

If the assist stage at $3,017 holds, Ether might proceed its restoration and rally in direction of the important thing resistance stage at $3,592. Just like Bitcoin, Ether’s RSI is rebounding from oversold territory, indicating a fading bearish momentum. 

On the flip facet, if Ether’s each day candle closes under $3,017, it might file additional bearish efficiency and decline towards the subsequent key assist at $2,749.