Key takeout
- ETH has fallen almost 2% and is currently trading nearly $3,600.
- If the market situation remains bearish, the second largest cryptocurrency by market capitalization could fall below $3,400.
As market corrections continue, ether cannot exceed $3,700
Ether, the second largest cryptocurrency by market capitalization, has lost 2% of its value in the past 24 hours. Negative performance occurred as the ether failed to remove the $3,730 resistance and fell below $3,600.
At the time of pressing, the ether trades at $3,620, which could drop if the market conditions remain bearish. It also has a bearish performance, despite the etheric ETF recording an influx of $73.22 million on Tuesday, possibly due to guidance that SEC staking activity is not a securities offering.
Nate Geraci, president of Novadius Wealth Management, explained that the guidance cleared the final hurdle and prevented market regulators from approving the Spot Ether ETF on staking.
Ethereum retests daily resistance at $3,730, potentially below $3,400
The ETH/USD 4-hour chart remains bullish as Ether has protected prices above 3K over the past few weeks. On Tuesday, ether was rejected at $3,730 from daily resistance levels, down more than 3%.
As of Wednesday’s writing, it continues to trade in red for around $3,620. Technical indicators suggest bullish momentum to weaken. This will show that prices will drop even further in the near future.
If that happens, ETH could fall below the $3,400 low that was created over the weekend. The extended bearish run could potentially retest the trading range, which is valid for the first time since July 14th, to around $3,077.
The 53 RSI suggests a weakening bullish momentum, but MACD continues to hold a bearish crossover and supports revised papers. If the RSI remains above 50, the Bulls can regain control of the market and push daily resistance up $3,730 in the coming hours or days. Ether can also expand its recovery to $4,000 for the next important resistance.
