Early this week, Ethereum’s price briefly crossed over the $2,000 mark before recent U.S. inflation data caused it to decline significantly and push its value below this threshold once more. Unfortunately for Ethereum, gaining momentum even during general market uptrends has proven difficult; notably though a major technical analysis indicator recently suggested it may be nearing bottom and could potentially experience an imminent recovery period.
Is a Turnaround on the Horizon for ETH?
Tony Severino of Chartered Market Technician has shared analysis showing that key metrics related to Ethereum have reached levels similar to those seen during the 2018 bear market, suggesting the possibility of its rebound from recent lows. This insight comes from using 1-month relative strength index (RSI), a momentum indicator which measures price movements over time and helps identify overbought or oversold conditions when readings exceed certain thresholds; often suggesting trend reversal when readings pass certain thresholds.
An RSI reading above 70 usually indicates an asset is overbought, while anything below 30 indicates an oversold condition. According to Severino, Ethereum’s monthly RSI indicator had dropped back down to levels last seen during the depths of 2018 bear market as well as recent significant sell-offs in 2022 – both dips being followed by strong price recoveries in Ethereum trading history.
After reaching its lowest point in 2018, Ethereum’s price experienced an unprecedented nearly fourfold surge, growing from roughly $120 to an all-time high of $4,878 in under four years. Furthermore, after experiencing similar RSI lows again in 2022 and again early 2024, this phenomenon suggestive potential for significant rally from current levels.
However, it is crucial to distinguish these RSI lows in context of one another. The 2018 bottom was preceded by a dramatic 94% price drop from its peak; by comparison, Ethereum currently sits 56% below both its local high and record peak prices – suggesting more declines may still lie ahead before any sustained recovery occurs. These discrepancies highlight uncertainty as to whether Ethereum could see further drops before any significant recovery takes place.
Current State of Ethereum Prices
At present, Ethereum stands at approximately $1,880, representing a near 7% decrease over the past 24 hours. This recent price movement demonstrates both its ongoing volatility and speculative nature of cryptocurrency markets; providing investors with both risks and opportunities for short-term investing.
