Ethereum's recent price performance is concerning, with multiple technical indicators suggesting that ETH may be facing a deep adjustment. Market sentiment has sharply turned bearish, and more declines may occur in the short term, although some signals also hint at potential rebound opportunities.
RSI drops to oversold levels, selling pressure accumulates
The Relative Strength Index (RSI) for Ethereum has recently fallen to its lowest point since the end of December, indicating that the market has entered the oversold zone. This is typically a signal of excessive price decline, suggesting that the market may be experiencing extreme selling pressure. However, while the RSI suggests a potential rebound, the current market sentiment still leans towards pessimism.
ADX strong bearish signal: Sellers dominate
Another technical indicator that cannot be overlooked is the Average Directional Index (ADX), which clearly shows that the market is in a strong bearish trend. By comparing -DI (selling pressure) and +DI (buying pressure), it can be seen that selling strength is increasing significantly, while buying momentum has almost completely vanished. This imbalance provides strong support for a continued decline.
"Death cross" looming: Short-term EMA falls below long-term EMA
More concerning is that a "death cross" may soon appear on the technical chart of ETH prices. The short-term Exponential Moving Average (EMA) might fall below the long-term EMA, a technical signal that typically indicates the possibility of further market correction and decline. If this crossover occurs, it may intensify bearish sentiment in the market, leading more investors to adopt avoidance strategies.
Key support levels and rebound opportunities: The market remains undecided
Despite the prevailing bearish sentiment in the short term, key support levels remain the focus for investors. If Ethereum can hold these supports and break through the existing resistance zone, there is still a chance for a rebound. In this case, ETH may restore its upward trend and potentially test higher price levels.
Conclusion: Bearish control, but rebound potential remains
Currently, the market trend for Ethereum is clearly bearish, but the RSI and support levels suggest there is potential for a rebound. Continued selling pressure may lead to further downside, but if the market finds support and buying momentum resumes, ETH may welcome a new rebound.
This game of bearishness versus rebound may reveal itself in the coming days or even weeks. Investors need to keep a close watch on market movements, especially changes in key technical indicators.
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