Key takeaways
- ETH is down 1.7% in the last 24 hours and is trading below $2,900.
- The coin could retest the $2,749 support level if the bearish trend continues.
ETH falls below $2,900
The cryptocurrency market has been bearish in the last three weeks despite an excellent start to the year. After hitting the $3,400 level earlier this month, Ether has lost nearly 20% of its value in the last two weeks.
The bearish performance saw ETH lose 1.5% of its value in the last24 hours and briefly dropped below $2,800 on Sunday. It has now slightly recovered and is currently trading above $2,880.
However, the bearish performance could persist as macroeconomic conditions continue to affect the broader crypto market. The U.S. government risks yet another shutdown as Democratic lawmakers have threatened to block a Department of Homeland Security funding bill following controversy over federal law enforcement actions.
The Federal Reserve will also give its first rate decision of 2026 soon. If the Fed keeps the interest rate the same or increases it, Ether and other leading cryptocurrencies could record further losses in the near term.
With Gold and Silver hitting new all-time highs a few hours ago, leading cryptocurrencies like BTC and ETH could continue to underperform.
Ethereum could dip to the $2,749 support level
The ETH/USD 4-hour chart is bearish and efficient as Ether has recorded losses recently. The leading altcoin closed its daily candle below the $3,017 on Tuesday and lost 5.5% through Sunday.
At press time, ETH is trading at $2,889, close to the key support at $2,749. If this support level holds, ETH could recover toward the daily resistance level at $3,017.
However, traders should be cautious as the momentum indicators show that the bears are currently in control. The MACD lines are within the negative territory, while the RSI of 41 is below the neutral 50.
On the flip side, if Ether closes its daily candle below the $2,749 support, it could extend the correction toward the November 21 low at $2,623.
