Key takeaways
- ETH risks dropping below $4,500 after losing 3.5% of its value.
- The support level at $4,350 could be the next target if ETH fails to bounce.
ETH dips to $4,500 as market opens bearish
The cryptocurrency market opens a new week bearish after an excellent performance last week. Bitcoin, the leading cryptocurrency by market cap, lost 1% of its value and temporarily dropped below the $115k mark.
Ether, the leading altcoin and the second-largest cryptocurrency by market cap, recorded an even bigger loss. It dipped 3.5% in the last 24 hours to now trade at $4,510.
The bearish performance comes despite the crucial Fed rate decision later this week. Ether hit an all-time high above $4,900 in August but has failed to build on this momentum since then. It is down 9% from its all-time high but could look to bounce back soon.
This week’s price action could be determined by the Fed rate decision on Wednesday. A rate cut by the Federal Reserve will send BTC, ETH, and other crypto assets flying in the near term.
Ether bulls target new all-time high above $5k
The ETH/USD 4-hour chart remains bullish and efficient, suggesting that buyers remain in control despite the recent bearish price action. The momentum indicators also remain bullish, with ETH now targeting a new all-time high.
Ether has found support temporarily around $4,488. The RSI of 60 shows that ETH remains bullish on the higher timeframe. The MACD line is also within the positive territory, suggesting a bullish bias.
If the $4,488 support holds, Ether could extend its rally towards the all-time high price of $4,956. An extended bullish run would allow it to surpass the $5k mark for the first time in its history.
However, failure to defend the support level at $4,488 could see ETH drop to the next major resistance level at $4,350. The resistance level is also a 4-hour TLQ and could provide the required liquidity to surge higher.