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Key takeaways
- ETH is down 4.5% in the last 24 hours and is now trading below $3,900.
- The leading altcoin could dip below $3,700 as the bullish momentum fails to grow stronger.
ETH dips below $3,900
The crypto market has resumed its bearish trend after recording gains on Monday. Ether, the second-largest cryptocurrency by market cap, is down 4.5% in the last 24 hours and is now trading below $3,900.
The bearish performance comes as the ongoing tariff war between the United States and China continues to affect the financial markets. U.S. President Trump is expected to meet Chinese leader Xi Jinping later this month, and trade tensions are expected to continue before and after the event.
While commenting on the current market conditions, Jeff Mei, COO at BTSE, stated that,
βWe 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, itβs unlikely that tensions will evaporate altogether.β
ETH could slip below $3,700
The ETH/USD 4-hour chart is bearish and efficient as Ether has underperformed in recent weeks. The coin has lost 4% of its value in the last 24 hours and now trades below $3,900 per coin.
The momentum indicators are bearish, signalling selling pressure in the market. The RSI of 52 shows a fading bullish momentum, with the RSI below the neutral zone also indicating that sellers are temporarily in control.
If the bearish trend continues, ETH could slip below the Friday low of $3,700 and retest the $3,499 low created two weeks ago. The $3,499 support will likely hold in the near term, allowing ETH to push higher.
If the bulls regain control of the market, ETH could surge to the ILQ level at $4,300 over the next few hours. An extended rally would see ETH reclaim the psychological resistance at $4,533.
