It seems that the price of Ethereum has returned on the way to recovery, and restore the level of $ 2,000 earlier in the week. However, Altcoin was among the encryption assets that were severely affected by the latest inflation data in the United States, as it returned to less than $ 2000.
This last correction highlights the ETHEREUM price conflicts in the past few months, and it is poorly performed even in the midst of the Taurus round at the market level. Interestingly, a prominent indicator may flash on the top of the bottom in the second largest encrypted currency.
Is eth ready for apostasy?
In a publication on March 28 on the X platform, the Carted Market Technician (CMT) Tony Sevirino subscriber The decisive indicator of ETHEREUM price is at the 2018 bear market levels. The encryption expert suggested that Altcoin can prepare for apostasy from its lowest levels.
This analysis depends on modern changes in the RSI Relative Index Index (RSI) on the monthly chart. The relative strength index is an index of momentum used in technical analysis to measure the speed and size of asset price changes.
the RSI oscillator It is used to discover whether the original has been clarified or excessive in the sale, indicating the tendency of the reflection/prices. RSI’s reading of more than 70 indicates a market condition at the peak of purchase, while the value of the relative strength index is less than 30 to an increase in work.
According to Severino, the monthly ETHEREUM RSI index is at the value of the last time seen during the bear market in 2018. It was observed in the graph below, the index also reached this bottom after the surrender of the encryption market in May and November 2022.
Source: @tonythebullBTC on X
After reaching this level, the relative strength index and the ETH price tend to bounce to its highest new levels. In the 2018 cycle, the ETHEREUM price increased by about 4000 % of about $ 120 to the highest level at all times of $ 4,878.
Meanwhile, Altcoin returned to this high price in early 2024 after reaching the RSI bottom in 2022. If history repeats itself, the ETH price may rise from his current point of view to the highest new level.
However, Severino highlighted in his position that the monthly Ethereum RSI bottom came after the price decreased by approximately 94 % of its highest level. ETH price is only 56 % of the highest local level and 63 % of its current record. Thus, it remains to see whether the ETHEREUM price is at risk of a decrease.
Ethereum price at a glance
From writing these lines, the ETH price is about $ 1880, which reflects a decrease of approximately 7 % over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Distinctive image from Unsplash, tradingvief chart
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