Ethereum fell 32% over a seven-day period, and 18% in just the past 24 hours. This is the biggest decline in crypto this year.
Ethereum is a cryptocurrency (ETHThe daily chart of the price shows: dramatic decline With the price currently at $2350, it is down 12.35% in one day. Ethereum has fallen below the lower Bollinger band, which is currently $2,650. This index can be used to indicate that an asset might have been oversold.
Bollinger Bands show increased volatility as the bands expand significantly. Ethereum’s price below the lower band usually indicates the asset is being oversold. If the price doesn’t recover quickly, it could indicate bearish pressure.
ETH’s on-balance volume (OBV) confirms a bearish outlook. OBV is currently at 43.49 millions, and has declined in parallel with the drop in price, indicating that there are strong selling pressures.
If ETH’s OBV continues to decline, it would be a sign of persistent selling, and a potential further drop in Ethereum’s value.
Weekly chart of ETH in critical condition
This chart is a weekly summary Ethereum’s situation It does not seem much better. Price has fallen below lower Donchian Channel at $2111. The upper and middle Donchian Channels currently sit at $3.977 and $3,000, respectively.
This break of the lower channel shows a strong trend in the bearish direction, since it indicates that the price reached new lows which were not seen during the previous 20 trading sessions. This level is a good indicator of further risk to the downside.
Moreover, on the chart of the week, the Relative Strength Index is currently at 38.55. This is down from a high recent value of 54.90. If the RSI falls below 30, this would indicate an oversold situation, which could result in a temporary bounce around or above $2,800.
The current trend is weakening, but unless there’s a major reversal of the downward pressure on ETH, it could continue.
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Ethereum’s future depends largely on its ability reclaim important support levels. The price could be stabilized if the Bollinger Band is reclaimed at the $2,650 level on the daily graph.
On the weekly chart a return to the Donchian Channels would be positive, especially if it was above the $3 044 middle band.
If the bearish trend continues, Ethereum could test lower support levels of $2,000 with further drops possible if market conditions worsen. remain unfavorable.
Benjamin Cowen said that Ethereum’s price could remain at current levels for a short time before undergoing another decline, especially if the macroeconomic environment, like rate cuts, plays out similar to other market cycles.
Peter Brandt, a market veteran, also suggests that Ethereum may be close to its bottom. The analyst calculated that the bottom of the rectangle ranges from $4,500 up to $2,814, indicating the target has almost been achieved.
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Source: crypto.news