The $ETH price has continued to bleed out against USD, and more seriously against $BTC. Has a bottom finally been found, and where could the $ETH price go from here?
Source: TradingView
The ETH/USDT chart shows that the $ETH price is starting to consolidate above the major horizontal support level at $1,600. A candle wick down to $1,400 was bought up quickly last week, suggesting that bulls will strongly support this level.
If one looks left in the chart, it can be seen that this level was strong support and resistance in mid 2022, through to October 2023. In fact, the end of the price fall in June 2022 coincided with the FTX crash, where $ETH went to a nadir of $880.
If one looks at the RSI on the weekly time frame for this crash, it shows that the indicator went to a level of 26.00, which is the lowest ever reading. That said, the current RSI level is the third lowest in $ETH’s history, perhaps also signalling that the bottom is now in.
Source: TradingView
The ETH/BTC chart does look awful. The bleed out against $BTC has been taking place since September 2022, and this equates to 77% down since that time.
Many traders might have tried to catch the falling knife as $ETH has decreased against $BTC. Their thinking might have been that surely it can’t keep falling. There may be the possibility that the price falls down to 0.018 BTC, but this really must be the absolute bottom.
At the bottom of the chart is the RSI. The indicator is currently at the lowest level in its history. Might this be another reason for a bounce from here?
The major problem here could be that investors see far more value in Bitcoin, given its use case as a store of value, rather than in Ethereum, which is struggling to stay relevant among much faster and cheaper layer 1s.
The market is always right over the longer term, and what the $ETH price does over the rest of this crypto bull market will either save or condemn Ethereum. This remains to be seen.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
— CONTENT NOT MODERATED BY G6
