Ethereum Price Analysis: Is a Rebound on the Horizon?
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The Current State of Ethereum’s Market Value
Recently, Ethereum’s price had seemingly embarked on a journey toward recovery, momentarily crossing the crucial $2,000 mark. Despite this brief rally, the recent inflation data from the United States exerted downward pressure on the cryptocurrency, causing it to dip below the $2,000 threshold once again. This downward adjustment underscores the challenges Ethereum has faced in recent months, even amidst a broader market upswing. Remarkably, a significant market indicator is now signaling the potential bottoming out of this leading altcoin.
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Is Ethereum Poised for a Recovery?
In a detailed analysis shared on March 28 via the X platform, Chartered Market Technician (CMT) Tony Severino highlighted a pivotal indicator for Ethereum’s price, which has now reached levels reminiscent of the 2018 bear market. According to Severino, Ethereum might be on the brink of bouncing back from its recent lows.
This anticipation is drawn from an analysis of recent shifts in Ethereum’s 1-month Relative Strength Index (RSI) on the monthly chart. The RSI is a key momentum indicator in technical analysis that evaluates the pace and extent of price changes in an asset. By identifying overbought or oversold conditions, the RSI can signal potential trend reversals. Typically, an RSI above 70 indicates an overbought scenario, while values below 30 suggest an oversold condition.
Severino pointed out that Ethereum’s monthly RSI is currently echoing the values seen during the 2018 bear market. The chart further reveals that the RSI also reached this low following major market capitulation events in May and November 2022.
After hitting such levels, Ethereum’s RSI and price have historically tended to rebound, reaching new peaks. During the 2018 cycle, Ethereum’s price skyrocketed by nearly 4,000%, climbing from approximately $120 to its all-time high of $4,878. In early 2024, Ethereum once again neared this record high after the RSI bottom of 2022. If history provides any guidance, Ethereum’s price might rally from its current stance to achieve new heights.
However, Severino noted that in 2018, Ethereum’s monthly RSI bottomed after a 94% drop from its previous all-time high. Presently, Ethereum’s price is down by 56% from its local high and 63% from the current record peak. Therefore, the possibility of further declines cannot be ruled out.
Current Ethereum Price Overview
At the time of writing, Ethereum’s price hovers around $1,880, marking a significant 7% decrease over the past 24 hours.
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