Will Ether test the daily resistance at $3,350? Check forecast

Key takeaways

• Ether is down 6% in the last 24 hours and is now trading around $3,500.
• The coin could retest the daily resistance at $3,350 in the near term.

Ether slips to $3,500

Ether, the second-largest cryptocurrency by market cap, has lost 6% of its value in the last 24 hours and is now trading at $3,502 per coin. The bearish performance comes as the broader cryptocurrency market continues to bleed.

The coin’s negative trend also comes despite Ethereum treasury firm BitMine Immersion (BMNR) announcing on Monday that it added 82,353 ETH to its balance sheet. The latest acquisition means that BitMine’s holdings have climbed to 3.39 million ETH or 2.8% of ETH’s circulating supply. 

While commenting on the acquisition, BitMine’s chairman Thomas Lee stated that,

Ethereum fundamentals continue to strengthen at an accelerating pace, with stablecoin supply on ETH rising >15% in the past 8 weeks and application [revenue] reaching an all-time high. Most of the time, price leads fundamentals, but at times fundamentals drive ahead, and price converges higher.

BitMine intends to acquire 5% of ETH’s circulation. It is currently the leading company with Ether holdings, ahead of SharpLink Gaming (SBET), which holds 859,395 ETH, and The Ether Machine (ETHM) with 496,712 ETH.

Ether could retest the daily support at $3,350

The ETH/USD 4-hour chart is bearish and efficient as Ether has underperformed in recent weeks. Ethereum saw $292.6 million in liquidations over the past 24 hours, led by $269.2 million in long liquidations, as traders took a massive hit.

The technical indicators are currently bearish, suggesting further selling pressure. The RSI on the daily chart of 43 is below the neutral 50, indicating a bearish bias. The MACD lines also crossed over into the negative zone over the weekend, flashing selling signals to traders.

If the selloff continues, ETH could retest the daily support at $3,350, last touched on August 2nd. However, if the bulls regain control of the market, ETH could recover above $3,700 before eyeing the major resistance level at $3,900.