While the downward movement continues in the crypto money market, the sales continue. Many of the assets in the market recorded losses of up to 20% on the bearish error. The strong correction revealed that assets are currently reaching oversold levels and the majority of the market is oversold.
Ethereum Becomes Top-Selling Asset
The blood loss of the leading cryptocurrency Bitcoin has turned the entire market red. On the other hand, the increase in the oversold levels in the market created conditions that suggest that short-term bullish movements may return soon. The Relative Strength Index (RSI) is one of the most popular tools for identifying local bottoms and tops based on the market’s oversold and overbought conditions.
In today’s Ethereum, the market has reached oversold levels that investors have not seen in the past two years. The index has now touched a value below 30. The last time the Ethereum RSI indicator reached these levels was in March 2020, when the pandemic triggered the crisis in the financial financial markets.
Last summer, ETH dropped more than 50% from $4,378 and the RSI reached a value close to 30. After seeing extremely lows, the RSI quickly bounced back to above 50. After recovering, ETH entered a rally reaching $3,900.
What is the Technical Situation in Ethereum?
In addition, the RSI can be used as a standalone analysis tool, while additional indicators such as moving averages can give us a clue about the current state of the market. In Ethereum, the current situation has dropped below the 200-day Exponential Moving Average, which is generally considered a long-term bearish signal. Finally, Ethereum price is trading at $3,200 as of the writing of this article.