Key Takeaways
- Ethereum (ETH) has experienced a 4.5% decrease in the last 24 hours, trading below the $3,900 mark.
- The leading altcoin might test support levels below $3,700 if current bearish momentum persists.
- Broader market sentiment appears influenced by ongoing U.S.-China trade tensions, contributing to crypto volatility.
Ethereum Price Dips Amid Market Volatility
The cryptocurrency market has seen a shift back to bearish trends following a brief period of gains on Monday. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently trading below $3,900, marking a 4.5% decline in the past 24 hours.
This downward price action coincides with the continued impact of the tariff dispute between the United States and China on global financial markets. Attention remains fixed on the upcoming meeting between U.S. President Trump and Chinese leader Xi Jinping later this month, with trade tensions expected to persist before and after their discussions.
Jeff Mei, COO at BTSE, commented on the prevailing market conditions, stating, “We believe that macro concerns are driving day-to-day changes in the market. Volatility will continue as long as there are trade tensions between the U.S. and China. While they may come to an agreement at the end of the month and cause markets to rally, it’s unlikely that tensions will evaporate altogether.”
Potential for Further Decline Below $3,700
The technical outlook for ETH/USD on the 4-hour chart indicates a bearish trend, reflecting Ethereum’s underperformance in recent weeks. The cryptocurrency has shed 4% of its value over the last day, now trading below $3,900 per coin.
Momentum indicators suggest increasing selling pressure in the market. The Relative Strength Index (RSI), currently at 52, points to weakening bullish momentum. A reading below the neutral zone further indicates that sellers are temporarily gaining control of price action.
If the current bearish trend persists, ETH could fall below Friday’s low of $3,700. A subsequent retest of the $3,499 low established two weeks prior is a possibility. However, the $3,499 support level is anticipated to provide some stability in the near term, potentially paving the way for a recovery in ETH’s price.
Conversely, should bullish sentiment regain dominance, Ethereum could potentially surge towards the Intraday Liquidity Zone (ILQ) level of $4,300 within the next few hours. A more extended rally might see ETH reclaim the significant psychological resistance at $4,533.
Expert Summary
Ethereum’s price has fallen below $3,900, influenced by macroeconomic factors and U.S.-China trade tensions. Technical indicators suggest a potential descent towards $3,700 or lower if bearish momentum continues, though support at $3,499 may offer a floor for a rebound.