Key takeaways
- ETH is down nearly 2% and now trades around $3,600.
- The second-largest cryptocurrency by market cap could drop below $3,400 if market conditions remain bearish.
Ether fails to stay above $3,700 as market correction continues
Ether, the second-largest cryptocurrency by market cap, lost 2% of its value over the last 24 hours. The negative performance comes as Ether failed to take out the $3,730 resistance and briefly dropped below $3,600.
At press time, Ether is trading at $3,620 and could drop lower if the market conditions remain bearish. The bearish performance also comes despite Ether ETFs recording inflows of $73.22 million on Tuesday, likely driven by the SEC’s guidance on staking activities not being securities offerings.
Nate Geraci, president of NovaDius Wealth Management, explained that the guidance has cleared the last hurdle, stopping the market regulator from approving spot ether ETFs with staking.
Ethereum retests its daily resistance at $3,730, could drop below $3,400
The ETH/USD 4-hour chart remains bullish as Ether has defended its price above $3k over the last few weeks. On Tuesday, Ether faced rejection from its daily resistance level at $3,730 and declined by more than 3%.
At the time of writing on Wednesday, it continues to trade in red at around $3,620. The technical indicators suggest a weakening bullish momentum, which could see the price drop further in the near term.
If that happens, ETH could drop below the $3,400 low created over the weekend. An extended bearish run could result in Ether retesting the valid trading range around $3,077 for the first time since July 14.
The RSI of 53 suggests a weakening bullish momentum, while the MACD continues to hold a bearish crossover and supports the correction thesis. If the RSI remains above 50, the bulls could regain control of the market and push ETH above the daily resistance at $3,730 in the coming hours or days. Ether could also extend the recovery toward its next key resistance at $4,000.
