Ethereum prices appeared to be back towards recovery, regaining a psychological $2,000 level early in the week. However, Altcoin is one of the crypto assets that has been heavily affected by the latest US inflation data, falling below $2,000.
This latest revision highlights the struggle for Ethereum prices over the past few months, with performance diminishing even amid the bull run across the market. Interestingly, the notable indicators flashed the bottom difference of the second largest cryptocurrency.
Is ETH ready for rebound?
In a March 28th post on the X platform, Tony Severino of Chartered Market Technician (CMT) shared that the key indicator of Ethereum prices is at the 2018 Bare Market level. Crypto experts suggested that Altcoin is preparing for rebound from its recent lows.
This analysis is based on recent changes in the Ethereum Monthly Chart’s Monthly Relative Strength Index (RSI) indicator. The relative strength index is a momentum index used in technical analysis to measure the rate and magnitude of changes in the price of an asset.
RSI oscillators are used to detect whether assets are over-acquired or over-selling, indicating a trend/price reversal. Normally, readings of RSIs above 70 indicate excessive market conditions, whereas relative intensity index values below 30 indicate overselling conditions.
According to Severino, the monthly Ethereum RSI indicator is currently at the last seen value in the 2018 bare market. As observed in the chart below, this indicator reached this bottom following the May and November 2022 crypto market surrender events.
Source: @tonythebullBTC on XAfter reaching this level, the relative strength index and price of ETH tends to return to new highs. In the 2018 cycle, Ethereum prices increased 4,000% from around $120 to the current highest peak of $4,878.
Meanwhile, Altcoin returned to this record high price in early 2024 after reaching the bottom of this RSI in 2022. If history repeats itself, the price of the ETH could return from the current points to a new high.
However, Severino stressed in his post that the monthly Ethereum RSI bottom in 2018 came after prices fell about 94% from their then highs. ETH prices are 56% adsorption from local highs, 63% from the highest on current record. Therefore, it remains to be seen whether there is a risk of further decline in Ethereum prices.
Ethereum prices are at a glance
At the time of writing, ETH priced around $1,880, reflecting a nearly 7% decline over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingViewUnsplash featured images, TradingView charts
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