Key takeout
- Ether fell below the $3,400 level over the weekend as performance in the broader market declined.
- The coin is currently trading above $3,500 and could soon gather towards the $3,700 level.
Ether will rebound from weekend sale
Ether, like the broader cryptocurrency market, had a slower performance last week. The second-largest cryptocurrency by market capitalization lost 8% of its value in the last seven days, reaching its low of $3,359 on Saturday.
The decline in performance was caused by several macroeconomic factors. The Federal Reserve kept interest rates the same, but the Fed chair suggested there was no certainty about rate cuts in September.
Non-farm salaries are also inadequate, indicating that the US economy is growing at a much slower rate than expected. Finally, the market responded negatively during the new tariff debate.
Macroeconomic factors led to the ether falling below $3,400 as Ethereum ETF outflow exceeds $200 million.
However, the market is currently undergoing revisions and could surge high if conditions remain positive.
ETH targets resistance levels of $3,700
The ETH/USD 4-hour chart is endurable and efficient after falling below the daily support level of $3,730 over the weekend. A recovery above $3,500 indicates that ether found support at $3,392 at a Fibonacci retracement level of 78.6%. At the time of writing, it continues to recover and is trading for over $3,500.
Technical indicators are currently rebounding due to low weekends. The RSI on the four-hour chart reads 49 after bouncing 50 neutral levels on Saturday, then scores points upwards, indicating that bullish momentum is gaining traction. The MACD line is set up to quickly cross bullish territory.
As ETH continues to recover, the rally can be extended and regained $3,730 resistance points. The extended bullish movement allows ether to surge towards a monthly high of $3,931.
On the other hand, if ETH is facing fixes, it could potentially be dipped further and retested critical support for $3,170. The support level of around $3,300 is currently protected by the Bulls.