Main Takeaways
- ETH has dropped nearly 2%, now trading around $3,600.
- The second-largest cryptocurrency could fall below $3,400 if bearish market conditions persist.
Ethereum Struggles to Maintain Above $3,700 as Market Correction Continues
Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a 2% decline in value over the past 24 hours. This downward trend follows its failure to break through the resistance level of $3,730, briefly dipping below $3,600.
At the time of this report, Ethereum is trading at $3,620 and may drop further if market conditions remain bearish. This decline occurs despite Ethereum ETFs reporting inflows of $73.22 million on Tuesday, likely due to the SEC’s clarification that staking activities do not constitute securities offerings.
Nate Geraci, President of NovaDius Wealth Management, explained that the SEC’s guidelines removed the last barrier preventing the approval of Ethereum spot ETFs with staking.
Ethereum Retests Daily Resistance at $3,730 and Could Drop Below $3,400
The ETH/USD four-hour chart remains bullish, with Ethereum holding above $3,000 in recent weeks. However, on Tuesday, the cryptocurrency was rejected at its daily resistance level of $3,730, declining by over 3%.
As of Wednesday, Ethereum continues to trade in the red at approximately $3,620. Technical indicators suggest a weakening bullish momentum, which may lead to a further price decline in the short term.
Should this continue, ETH may fall below the recent low of $3,400, created over the weekend. A prolonged bearish trend could see Ethereum retesting the trading range around $3,077 for the first time since July 14.
The RSI at 53 indicates weakening bullish momentum, while the MACD maintains a bearish crossover, supporting the notion of a correction. If the RSI remains above 50, bulls could regain market control, potentially pushing ETH above the daily resistance at $3,730 in the coming hours or days. Ethereum might also stretch its recovery towards the next key resistance at $4,000.
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