The cryptocurrency market is slowly recovering from its recent losses, and some coins are rallying by more than 5%.
The broader crypto market recorded massive losses during the weekend, with the prices of most cryptocurrencies dipping by more than 10%. Bitcoin dropped below the $50k level for the first time since August, while Ether dipped below the $4k psychological point.
However, the market has started to recover from the losses, and Ether is one of the biggest winners. The second-largest cryptocurrency is up by more than 5% over the past 24 hours and is currently trading above $4,300 per coin.
At press time, ETH is trading at $4,380 per coin. There is no apparent catalyst behind this move, as the broader cryptocurrency market is just recovering from the recent losses. Bitcoin is also recovering as it is now trading above $51k per coin.
Key levels to watch
The ETH/USD 4-hour chart is one of the most bullish amongst the top ten cryptocurrencies by market cap. The RSI of 69 shows that Ethereum is heading towards the overbought region. Thus, indicating that the coin is now in the bullish territory.
The MACD line is also above the neutral zone, indicating the bullish nature of ETH at the moment. For the day ahead, ETH would need to avoid the $4,216 pivot if it needs to stand a chance of surpassing the first major resistance level at $4,519.
However, it would need the support of the broader cryptocurrency market if it wants to test the second major resistance level at $4,700 before the end of the day. On the flip side, a dip below the $4,216 pivot over the coming hours would bring the first major support level at $4,051 into play.
Unless there is an extended market sell-off, ETH should defend the support level above the $3,900 over the coming hours.