Key Takeaways:
- ETH is at risk of dropping below $4,500 after a 3.5% decline.
- A support level at $4,350 could be the next target if ETH does not rebound.
Ethereum Drops to $4,500 as Market Opens Bearish
The cryptocurrency market starts a new bearish week following a strong performance last week. Bitcoin, the leading cryptocurrency by market capitalization, has lost 1% of its value, briefly dropping below $115,000.
Ethereum, the top altcoin and the second-largest cryptocurrency by market cap, experienced an even larger decline, plummeting 3.5% in the last 24 hours to trade at $4,510.
This downturn occurs against the backdrop of an important Federal Reserve interest rate decision later this week. Ethereum peaked over $4,900 in August but has struggled to maintain its momentum since. It is currently down 9% from that all-time high and may be poised for a rebound soon.
This week’s price action could heavily depend on the Fed’s decision on interest rates on Wednesday. A rate cut by the Federal Reserve could propel BTC, ETH, and other cryptocurrencies in the short term.
Ethereum Bulls Targeting New All-Time High Above $5,000
The four-hour chart for the ETH/USD pair remains bullish, indicating that buyers are maintaining control despite recent price declines. Momentum indicators also show bullish tendencies, with ETH now aiming for a new all-time high.
Currently, Ethereum has found temporary support around $4,488. With a Relative Strength Index (RSI) of 60, ETH still appears strong in the higher timeframe. The Moving Average Convergence Divergence (MACD) is also in positive territory, signifying an upward bias.
If the support at $4,488 holds, Ethereum could extend its rally towards a record price of $4,956. A sustained upward movement might allow it to break the $5,000 mark for the first time in history.
However, failing to defend the support level at $4,488 could see ETH decline to the next major resistance level at $4,350. This resistance level is also significant on the four-hour timeframe and may provide the necessary liquidity to rise further.
Meet William, a proud Bethel University alumnus with a fervent passion for lifestyle and culture topics. His keen interest doesn’t stop there; he’s also deeply engrossed in current events of all kinds. William dedicates himself wholeheartedly to this site, thriving on the collaborative energy he shares with Suzanne, his long-standing partner in crime.
Having navigated their university courses side by side for years, their teamwork on the site is nothing short of dynamic. Together, they bring a unique blend of insights, proving that two heads are indeed better than one in delivering compelling content.
