- ETH price revisits historical RSI low, which commenced the 2019-2021 bull run.
- Ethereum price has impulsively fallen, and detecting a conventional reversal signal will be challenging.
- An early invalidation of the bearish downtrend could be a breach at $1570 for investors willing to take on a high-risk, high-reward setup.
Ethereum price should be the chart of the week for traders, scalpers and investors alike. Volatility spikes in both directions are probable.
Ethereum price has shaken the grounds
Ethereum price has fallen below $1250, a level unseen since 2021. The bearish collapse has happened in a nearly free-fall fashion, making trading the Layer 1 token highly risky. Extracting profitable trade setups will be no easy plight for professional traders. It is best to seek counsel from more experienced traders if you can. The newly breached liquidity level will undoubtedly pour in high volatility.
Ethereum price has analysts wondering where a relevant zone will begin to form. The Relative Strength Index provides significant context as the current $1236 ETH price now trades at the historical RSI level of 7. The last time ETH traded at this historical level, the price was $120 in 2019. This anomaly provokes the idea that a range and potential reversal signal afterward is in the cards for the Ethereum price. Bullish confluence is also found as the 200-weekly moving average has been breached at current price levels. However, if the bulls fail to provide support, a breach into the 2018 $800 weekly order block is a likely target for bears holding onto their short positions.
ETH/USDT 8-Hour Chart
Invalidation for traders looking to take a gamble will be the previous wave 4 degree within this week's downtrend at $1536. If the bears can breach this level, a spike into $1800 could occur, resulting in a 45% increase from the current Ethereum price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.