Ethereum’s price has experienced a 24-hour decline of 5.78%, coinciding with its Relative Strength Index (RSI) hitting its lowest point since August 2023, indicating oversold conditions. This analysis was disclosed by market veteran Michael van de Poppe in a recent update. The notable drop signals a strong bearish trend, suggesting Ethereum may currently be oversold. Additionally, various altcoins are at their lowest RSI levels, either historically or for this cycle, indicating widespread market capitulation.
Potential Downward Targets for Ethereum Price
Currently, Ethereum is trading around $2,956, reflecting a decline of 5.78% over the past day. Critical resistance levels are observed between $3,800 and $4,200, where Ethereum faced significant hurdles recently, contributing to its downward movement. The price is now testing crucial support at $2,480, with a breach potentially triggering further declines towards $2,145. Despite the decline, trading volume remains stable, suggesting a lack of panic selling. This stability hints that while sentiment is bearish, there could be potential for a rebound or consolidation phase ahead.
Price Impact on Holder Profitability
Upon analysis of Ethereum addresses, it’s evident that positions vary significantly at the current price of $2,956. Many addresses are currently “Out of the Money,” having bought ETH at prices ranging from $2,951.47 to $3,400.33, resulting in current losses.
Market Sentiment and Investment Flows
Meanwhile, recent reports from CoinShares have highlighted ongoing outflows from cryptocurrency investment products, totaling $30 million over the past three weeks, according to The Crypto Basic. Ethereum specifically saw an outflow of $61 million. Conversely, Bitcoin-related exchange-traded products (ETPs) saw an inflow of $10 million, bringing total assets across all Bitcoin ETPs to $67.57 billion. Other digital assets also experienced positive net inflows: Multi-asset ETPs attracted $18 million, while Solana, Litecoin, Chainlink, and XRP recorded inflows of $1.6 million, $1.4 million, $600,000, and $300,000, respectively. Ethereum’s outflow data suggests increased bearish sentiments around the asset.
Disclaimer: This content provides information and should not be construed as financial advice. The opinions expressed in this article are personal and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic bears no responsibility for any financial losses incurred.