The cryptocurrency market has been underperforming over the past few hours, erasing its earlier gains.
The broader cryptocurrency market has shed off more than $100 billion over the past 24 hours. The total cryptocurrency market cap yesterday was above $2.3 trillion, but it currently stands above $2.2 trillion.
The dip in the market cap comes as BTC and other leading cryptocurrencies record huge losses over the past 24 hours. BTC is trading below the $48k level again, down by more than 6% over the past 24 hours.
Ether, the second-largest cryptocurrency by market cap, is also down by more than 6% in the past 24 hours and is struggling to stay above the $3,700 level. The dip comes as the broader cryptocurrency market undergoes massive correction.
The cryptocurrency market is experiencing a bearish trend as we head into a new year. Since reaching a new all-time high above $4,600 last month, ETH has lost more than 30% of its value. If the bearish trend continues, then ETH could lose its major support level around $3,600 and dip below $3,500 in the coming hours or days.
Key levels to watch
The ETH/USD 4-hour chart is very bearish at the moment, thanks to the coin’s recent performance. The technical indicators show that ETH is underperforming, and its value could drop lower if the market condition persists.
The MACD line is below the neutral zone, indicating heavy selling pressure on ETH at the moment. The 14-day RSI of 34 shows that ETH is currently in the oversold region, and its value could dip further in the coming hours.
What to expect
If the current market conditions remain unchanged, then ETH would drop below the first major support level of $3,624 per coin over the next few hours. An extended bearish performance from ETH would see it trade below $3,500 for the first time in weeks.
However, if the bulls regain control, ETH could test the $3,972 resistance level before the Asian market opens. An extended bullish performance would see ETH trading above the $4,000 mark again.