Ethereum Plunges: Records 32% Weekly Decline, Biggest Year-to-Date Fall
Ethereum has experienced a significant downturn, plummeting by 32% over the past week, with an 18% decrease occurring in the last 24 hours alone. This decline coincides with the broader crypto market’s largest dip of the year.
The current price of Ethereum (ETH) sits at $2,350, marking a 12.35% drop for the day and pushing the cryptocurrency below the lower Bollinger Band, currently positioned at $2,650. This breach of the lower band suggests that Ethereum may be oversold, indicating potential for a rebound but also signaling bearish pressure if the price fails to recover promptly.
The Bollinger Bands, reflecting increased volatility, have significantly expanded, with Ethereum positioned beneath the lower band, indicating an oversold status that may precede a bounce-back or further downward movement if the price fails to recover. The On-Balance Volume (OBV) for ETH stands at 43.49 million, declining sharply in conjunction with the price drop, signaling substantial selling pressure.
A continued decrease in ETH’s OBV could indicate ongoing selling activity and the potential for further price declines. On the weekly chart, Ethereum’s price has broken below the lower Donchian Channel at $2,111, revealing a strong bearish trend as the cryptocurrency hits new lows not seen in the past 20 trading periods. A weekly close below this level could signal further downside risk.
The Relative Strength Index (RSI) on the weekly chart is currently at 38.55, down from a recent high of 54.90. A further drop in the RSI below 30 would confirm an oversold condition, potentially leading to a short-term bounce around or above the $2,800 threshold. However, the current trend indicates weakening momentum, suggesting that unless a significant reversal occurs, Ethereum’s downward pressure may persist.
The future trajectory of Ethereum hinges on its ability to reclaim key support levels. A recovery above the lower Bollinger Band at $2,650 on the daily chart could stabilize the price, while a move back within the Donchian Channels on the weekly chart, particularly above the middle band at $3,044, would be a positive development.
If the current bearish momentum persists, Ethereum could test lower support levels around $2,000, with the possibility of further declines if market conditions remain unfavorable. Analysts suggest that Ethereum may stabilize in the short term before potentially experiencing another downward movement, depending on macroeconomic factors like rate cuts.
Market veteran Peter Brandt indicates that Ethereum is nearing its price floor, with a rectangle pattern suggesting a downside target around $2,000, a level that is close to being realized. These analyses underscore the current challenges facing Ethereum and the uncertainties surrounding its future price movements.
