The cryptocurrency market has been underperforming for the past few weeks, and the losses could extend for the next few days.
The crypto space has lost more than $300 billion over the past few weeks. Bitcoin and Ether reached new all-time highs earlier this month after an extended rally that began at the start of the fourth quarter.
However, Ether has been struggling since it reached a new all-time high above the $4,800 mark. The second-largest cryptocurrency by market cap is struggling below the $4,500 level a few hours ago and could drop below $4,000 for the first time in weeks.
There is no major catalyst behind the latest decline in prices. The bearish trend has been affecting the cryptocurrency market for the past few weeks, with the prices of most coins down by more than 20% during that period.
Unless the bulls regain control of the market, ETH and other leading cryptocurrencies could record further losses over the coming days.
Key levels to watch
The ETH/USD 4-hour chart is currently bearish after Ether slipped towards the $4k level a few hours ago. At press time, ETH is trading at $4,059 per coin, down by more than 5% over the past 24 hours.
Ether’s MACD is below the neutral zone, while its RSI of 37 shows that ETH is currently oversold. The indicators are showing a strong bearish performance for Ether at the moment, and the losses could be extended over the coming hours.
If the current performance is maintained, then ETH could drop below the $4k level for the first time since October. An extended bearish performance could see ETH forced to defend the major resistance level close to $3,500.
However, if the bulls regain control, they could push ETH past the $4,200 pivot level. Surpassing the $4,200 pivot level could set Ether up to rally towards the $4,400 resistance point over the next few hours. Unless there is an extended bullish performance, the $4,600 resistance point should cap any short-term upward movement.