Key Takeaways
- Ethereum (ETH) has experienced a decline of 1.7% over the past 24 hours, currently trading below the $2,900 threshold.
- Should the prevailing bearish trend persist, the cryptocurrency may re-evaluate the critical support level at $2,749.
Current Market Dynamics: Ethereum’s Decline Below $2,900
The cryptocurrency market has exhibited a pronounced bearish trajectory over the past three weeks, a stark contrast to its robust performance earlier in the year. Following a peak valuation of approximately $3,400 earlier this month, Ether has subsequently experienced a depreciation in value, exceeding 20% over the last fortnight.
During this period of market volatility, ETH registered a loss of 1.5% within a mere 24-hour window, momentarily dipping beneath the $2,800 mark on Sunday before experiencing a slight recovery that positioned it around $2,880 at present. However, this marginal rebound does little to mitigate the overarching bearish sentiment that threatens to extend further.
The persistence of adverse macroeconomic conditions continues to exert significant pressure on the broader cryptocurrency landscape. Notably, impending risks surrounding potential government shutdowns in the United States loom large as Democratic lawmakers express opposition to critical funding bills associated with the Department of Homeland Security amid ongoing controversies regarding federal law enforcement actions.
Additionally, the Federal Reserve is poised to announce its inaugural interest rate decision for 2026 in the near term. A decision to maintain or elevate interest rates could precipitate further losses for Ether and other prominent cryptocurrencies.
In light of recent developments in traditional asset markets, with Gold and Silver achieving unprecedented highs, leading cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) are likely to continue underperforming relative to these commodities.
Potential for Ethereum to Test Support Levels
An analysis of the ETH/USD 4-hour chart reveals a distinctly bearish outlook as Ether has consistently recorded losses in recent trading sessions. The leading altcoin concluded its daily candle beneath the $3,017 threshold on Tuesday and has suffered an overall decline of 5.5% through Sunday.
As of the most recent evaluation, ETH is trading at approximately $2,889—positioning it perilously close to a significant support level at $2,749. Should this support level prove resilient, it may facilitate a recovery toward the daily resistance threshold established at $3,017.
Nonetheless, traders ought to exercise caution as momentum indicators currently suggest that bearish forces are firmly entrenched. The Moving Average Convergence Divergence (MACD) lines reside within negative territory, while the Relative Strength Index (RSI) registers at 41—significantly below the neutral threshold of 50.
Conversely, should Ether conclude its daily trading session beneath the pivotal support level of $2,749, it may catalyze an extended correction phase targeting the previously established low of $2,623 recorded on November 21.
