Important points
- ETH has fallen 4.5% in the past 24 hours and is currently trading below $3,900.
- Major altcoins could fall below $3,700 as the bullish momentum does not strengthen.
ETH falls below $3,900
The cryptocurrency market resumed its bearish trend after recording gains on Monday. Ether, the second-largest cryptocurrency by market capitalization, has fallen 4.5% in the past 24 hours and is currently trading below $3,900.
The performance has been bearish as the ongoing tariff war between the US and China continues to impact financial markets. US President Trump is scheduled to meet with Chinese President Xi Jinping later this month, and trade tensions are expected to continue before and after that meeting.
Commenting on the current market situation, Geoff May, COO of BTSE, said:
“We believe macro concerns are driving day-to-day changes in markets. Volatility will continue as long as there is a trade war between the US and China. A deal could be reached at the end of the month, sparking a market rebound, but tensions are unlikely to fully resolve.”
ETH could fall 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% in value over the past 24 hours and is currently trading below $3,900 per coin.
Momentum indicators are bearish, indicating selling pressure in the market. An RSI of 52 indicates that bullish momentum is weakening, and the RSI below the neutral zone also indicates that sellers are temporarily in control.
If this bearish trend continues, ETH could fall below Friday’s low of $3,700 and retest the low of $3,499 reached two weeks ago. The support at $3,499 is likely to hold in the short term, allowing ETH to move higher.
If the bulls regain control of the market, ETH could soar to the ILQ level of $4,300 in the coming hours. If the rally continues, ETH will regain the psychological resistance at $4,533.
