Ethereum is Now Most Oversold in Almost 2 Years, According to RSI

AnalysisEthereum is Now Most Oversold in Almost 2 Years,...



Arman Shirinyan

One of the most popular technical indicators reaches two-year lows

Contents

The global cryptocurrency market sell-off continues, with the majority of assets on the market losing up to 20% during this bearish week. The strong correction has created conditions in which most assets have reached “extreme oversold” levels that suggest that the majority of the market is selling too much, and short-term bullish movements might happen again quite soon.

Ethereum’s Relative Strength Index data

The Relative Strength Index is one of the most popular tools for determining local bottoms and tops based on the market’s oversold and overbought conditions. In the case of today’s Ethereum, the market has reached extreme oversold levels that traders have not seen for the last two years.

The index is currently staying at a value below 30. The last time Ethereum’s technical indicator reached the same levels was March of 2020, during the crisis on financial markets caused by the pandemic.

Ethereum Chart
Source: TradingView

A value close to 30 was present last summer when the second-largest currency’s price dropped by more than 50% from the local high of $4,378. After reaching an extreme low, the RSI quickly recovered back to values above 50. The same goes for the price that later rebounded and entered a new rally to $3,900.

Additional technical data

While RSI can be used as a standalone analysis tool, additional indicators like moving averages can also give us a hint about the current state of the market. In the case of Ethereum, the coin has just dropped below the 200-day Exponential Moving Average, which is usually considered a long-term bearish signal.



Learn more

Latest news

LUNC Price Suddenly Jumps 11% as Billions of Tokens Are Burned

Terra Classic (LUNC) suddenly jumped nearly 13% on Dec. 2 as the community received the results of Binance's...

Former FTX US President Is Seeking Funds for Crypto Startup: Report

Former FTX US President Is Seeking Funds for Crypto Startup: Report Learn more

A top aide to Ukraine’s President Zelensky accuses BP of war profiteering with stake in Russian oil firm

A major energy company that pledged to sell its stake in Russia has yet to do so, and...

Using A Holistic Approach To Loyalty For Building Stronger And Sustainable Customer Connections

Jai Rawat is the cofounder & VP of Product Strategy at Zinrelo. A successful serial entrepreneur with over...

Hundreds of Billions of SHIB Moved as SHIB Becomes Most Wanted Coin for Whales

Yuri Molchan Over trillion Shiba Inu coins have landed in these two wallets as whales have placed focus on...

Apple Makes Plans to Move Production Out of China

In recent weeks, Apple Inc. has accelerated plans to shift some of its production outside China, long the...

Must read

LUNC Price Suddenly Jumps 11% as Billions of Tokens Are Burned

Terra Classic (LUNC) suddenly jumped nearly 13% on...

Former FTX US President Is Seeking Funds for Crypto Startup: Report

Former FTX US President Is Seeking Funds for...

You might also likeRELATED
Recommended to you