Ethereum’s price has experienced a significant 24-hour drop of 5.78%, with its Relative Strength Index (RSI) hitting its lowest level since August 2023, indicating oversold conditions. Market expert Michael van de Poppe revealed this in a recent analysis, pointing to a considerable bearish momentum that suggests Ethereum may be oversold. Additionally, altcoins have also reached historically low RSI levels, signaling a broad market capitulation.
Potential Downward Targets for Ethereum Price
Currently trading around $2,956, Ethereum has seen a 5.78% decline in the past day. Key resistance levels are situated between $3,800 and $4,200, which Ethereum struggled to surpass, leading to its recent drop. The price now faces crucial support at $2,480, with a breach below this level possibly triggering further declines towards $2,145.
Despite the price decline, trading volume remains steady, indicating a lack of panic selling. This stability hints that while the market sentiment is bearish, a potential recovery or consolidation phase could be on the horizon.
Price Impact on Holder Profitability
An analysis of Ethereum addresses reveals varying positions based on the current price of $2,956. A significant number of addresses are currently “Out of the Money,” having bought ETH at prices ranging from $2,951.47 to $3,400.33, resulting in losses.
Market Sentiment and Investment Flows
A recent report from CoinShares highlighted a continued outflow from crypto investment products totaling $30 million over the last three weeks. Ethereum alone saw an outflow of $61 million. However, Bitcoin-related exchange-traded products (ETPs) experienced an inflow of $10 million, bringing total assets across all Bitcoin ETPs to $67.57 billion.
Interestingly, other digital assets saw 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. The unique outflow data for Ethereum suggests a growing bearish sentiment surrounding the asset.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are the author’s own and do not necessarily reflect those of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.