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

Key takeaways

• ETH is down 1% in the last 24 hours and is now trading below $3,200.
• The coin could rally above $3,500 if the daily candle closes above $3,100.

ETH approaches $3,200 as market takes a breather

The cryptocurrency market has been extremely bearish since the start of the month, with Bitcoin losing a key psychological level. Bitcoin dumped to a six-month low of $93k on Sunday, with altcoins also recording massive losses.

Ether, the second-largest cryptocurrency by market cap, is trading below $3,200 after retesting the $3k support level during the weekend. The coin has lost 11% of its value in the last seven days, signifying the third consecutive week of losses for the second-largest cryptocurrency by market cap.

Ether’s poor performance aligns with the broader crypto market, with liquidity tightening measures by the Federal Reserve affecting risk-based assets. However, analysts are confident that the crypto market will turn things around in the near term.

Derek Lim, research lead at Caladan, told The Block that,

Ether’s performance over the next few days will likely depend on whether it continues to defend the $3k psychological and support level. 

Ethereum could recover if the $3k support level holds

The ETH/USD daily chart is bearish and efficient as Ether has underperformed over the last seven days. The coin faced rejection at the previous broken trendline around $3,592 last week and has lost 12% of its value since then. At press time, ETH is trading at $3,192 per coin. 

If the support level at $3,017 holds, Ether could continue its recovery and rally towards the key resistance level at $3,592. Similar to Bitcoin, Ether’s RSI is rebounding from oversold territory, indicating a fading bearish momentum. 

On the flip side, if Ether’s daily candle closes below $3,017, it could record further bearish performance and decline toward the next key support at $2,749.

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