The broader cryptocurrency market has taken a hit over the past few hours, and Ether could drop below the $4,000 if the bearish sentiment is maintained.
Ether, the second-largest cryptocurrency by market cap, has seen its value take a hit over the past few hours. The massive dip comes as the broader cryptocurrency market retraces following China’s latest attack on Bitcoin mining and trading.
China’s National Development and Reform Commission (NDRC) blasted Bitcoin mining a few hours ago and revealed that it intends to launch a full-scale clampdown on crypto mining activities in the country.
As a result, BTC and other cryptocurrencies have experienced a massive decline in prices. Ether has lost more than 12% of its value over the past 24 hours, making it one of the worst performers amongst the top ten cryptocurrencies by market cap.
Ether set a new all-time high above $4,800 a week ago, but it is now struggling to defend the $4,000 level as the bearish sentiment in the market thickens.
Key levels to watch
The ETH/USD 4-hour chart is one of the most bearish amongst the leading cryptocurrencies. Ether’s MACD has dropped below the neutral zone, indicating that the bears are currently in control.
Meanwhile, its RSI of 26 shows that ETH is currently in the oversold region and could record further losses over the coming hours. At press time, ETH is trading $4,239 per coin, down by more than 12% over the past 24 hours.
If the existing market condition is maintained, ETH could record further losses and could drop below the $4,107 resistance point over the coming hours. In the event of an extended bearish sentiment in the market, Ether could drop below the $4,000 for the first time in nearly three weeks.
Ether could recover and move past the $4,427 resistance level over the coming hours. An extended bullish performance could see Ether trade above the $4,500 again.