Ether risks further downside as bears regain control

Key takeaways

ETH is down 5.5% and is now buying and selling beneath $2,900.
The main altcoins might document additional losses amid renewed bearish momentum.

The cryptocurrency market is beginning one other month bearish after the poor efficiency recorded by Ether and different main cash in November. Ether recorded a brief reduction final week, hitting the $3k psychological stage.

Nonetheless, the current positive factors have been worn out, with Ether now buying and selling round $2,800 after shedding 5.5% of its worth within the final 24 hours. The adverse efficiency noticed over $140 billion worn out from the crypto market throughout that interval, with the overall market cap now beneath $3 trillion.

Moreover, the bearish efficiency noticed over $500 million value of leveraged positions liquidated within the final 24 hours, with Binance, Bybit, and Hyperliquid accounting for 90% of the overall liquidations.

Ether and different main cryptocurrencies might face additional promoting strain within the close to time period. Nonetheless, with the Fed’s FOMC assembly slated for subsequent week, Ether and different main cryptocurrencies might expertise a brief reduction if the Federal Reserve cuts its benchmark rate of interest for the third time this yr. 

Ether might retest the $2,600 low.

The ETH/USD day by day chart is bearish and environment friendly as Ether has underperformed in current days. The coin has misplaced 5.5% of its worth since Sunday and is now buying and selling across the $2,840 area. 

If the ETH/USD day by day candle closes beneath the November 21 low of $2,623, the bears might push the value decrease over the subsequent few hours or days, with the subsequent main assist across the June 22 low of $2,111.

The technical indicators stay bearish, with the RSI of 34 suggesting that sellers are in management. The MACD additionally dangers a cross beneath the sign line, indicating Ethereum remains to be bearish.

Nonetheless, if the bulls recuperate from the current selloff, Ether might problem the pattern and push in direction of the $3k psychological stage as soon as once more.