Ether could decline below the $1k support level

The cryptocurrency market has lost the gains it recorded on Monday and could face further losses soon.

The cryptocurrency market has recorded heavy losses over the past 24 hours. The market has wiped out nearly $50 billion in the last 24 hours, with the total market cap down around $870 billion.

Bitcoin, the world’s number one cryptocurrency, is trading below the $20k psychological mark for the first time in a week after losing more than 4% of its value in the last 24 hours.

Ether maintains its position as the second-largest cryptocurrency by market cap. However, it has lost more than 7.5% of its value over the past 24 hours. ETH is currently trading around $1,060 and risks dropping below the $1k mark for the first time this month.

In the last seven days, ETH has shed more than 6% of its value and further losses could await the native token of the Ethereum blockchain.

Key levels to watch

The ETH/USD 4-hour chart is bearish at the moment as Ether has been underperforming over the past 24 hours. The technical indicators show that Ether is the worst performer amongst the top 10 cryptocurrencies by market cap. 

The MACD line has dropped below the neutral zone and currently stands at -41, indicating bearish momentum. 

The 14-day relative strength index of 23 shows that Ether is currently in an oversold position.

If the bearish trend continues, ETH could drop below the $1,000 mark for the first time in a month. In the event of an extended bearish performance, ETH could lose it second major support level around $935.

However, if the bulls regain control, ETH could reclaim its price above $1,100 before the end of the day. The second major resistance level at $1,172 should cap further upward movement in the short term.