The cryptocurrency market is correcting at the moment after a huge rally over the past few days, with some coins losing more than 1% of their value
The cryptocurrency market performed very well towards the end of last week and during the weekend. Bitcoin surpassed the $45,000 resistance point to settle above the $47,000 mark over the past few days. It is now down by 0.39% but is still trading above the $47,000 level.
Ether’s performance over the past few days was also excellent, surpassing the $3,000 resistance point to settle above the $3,200 level. The other leading cryptocurrencies also performed strongly over the past few days, rising by more than 6% during that period.
However, the market is now retracing after its recent rally. Most altcoins are down by more than 1% over the past 24 hours and could record further losses in the coming hours.
Ether price outlook
The ETH/USD 4-hour chart is still bullish following Ether’s excellent performance over the past few days. Its MACD line is currently in the bullish zone, while the RSI of 58 shows that it is leaning towards the overbought region more than the oversold.
Ether failed to stay above the $3,418 pivot, and the cryptocurrency dropped below the 23.6% Fibonacci level of $3,369 a few hours ago. The first major support level at $3,346 is now in play, and ETH could drop below this level over the coming minutes or hours.
ETH/USD 4-hour chart. Source: TradingView
If the sell-off period continues, the bulls would be forced to defend the second major support level at $3,272. However, Ether should steer clear of the sub $3,100 level in the coming hours unless the bearish sentiment grows stronger.
On the flip side, if ETH can climb towards the $3,418 pivot, then it stands a chance of surpassing the first major resistance level at $3,492 in the coming hours. Support from the broader crypto market could see ETH attempt to break past the second major resistance level at $3,563 before the end of the day.