Ethereum enters the “sell” zone for the first time since 2018.


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ethereum-eth
Ethereum. Source: blog.ethereum.org

The weekly Relative Strength Index (RSI) for Ether (ETH) hit the sell level for the first time since November 2018. While the Ethereum project cryptocurrency plunged to around 1,300. on the coin, analysts are warning investors not to try to catch the bottom, as downturns can go much deeper. Since its all-time high, the value of ETH has already fallen by more than 70%.

  • The 7-day RSI for Ether is in an oversold zone. A similar situation happened recently in November 2018.
  • The price of the Ethereum-owned cryptocurrency has fallen almost 30% on a weekly basis and almost 8% in the past 24 hours
  • Analysts warn that the bottom could be deeper than 1.3 thousand. hole. for one piece
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Ethereum in the “sell” zone

The second largest cryptocurrency has already lost over 70% of its value, counting from its ATH price. Meanwhile, well-known market analyst Scott Melker warns against trying to bottom out as downturns could get even worse.

Currently, you only have to pay 1.3 thousand for one Ether. hole. This virtual currency hasn’t been so cheap since January 2021. Yesterday’s session on its chart closed with a loss of 5.55%.

NDE

In the last 7 days alone, the price of ETH has fallen by more than 28%. The weekend brought a steep discount on this cryptocurrency. As a result, its weekly RSI ended up in the so-called oversold zone. Interestingly, this situation last occurred in November 2018.

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NDE
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Potential buying opportunity?

While some experts are sounding the alarm to avoid catching “falling knives”, some market watchers see an opportunity to acquire Ether at such levels. In their view, the movement of the RSI towards 30 points creates the likelihood that the price of ETH will recover just as quickly.

The first challenge after such a rebound would be for the Ethereum-owned cryptocurrency to recover the 200-week exponential moving average (EMA) around 1.6 thousand. dole. as a support line.

If investors start buying ETH while maintaining the uptrend, they could extend the move towards the 50-week EMA near 2.7k. hole. This would then be a change of about 100%.

There are also bearish scenarios alongside. According to the trader known on Twitter as Vince Prince, the hole in Ether could deepen until the price of this virtual currency falls to $650.

Currently, most major cryptocurrencies have seen strong selling. The price of the largest of them was about 25 thousand. hole. per piece, erasing almost 20% of the value in the 7 day range. Altcoins are bleeding just as badly, and the total market capitalization has shrunk by 6.77% over the past day.

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