In Summary
Ethereum trades below $2,000 as the RSI drops to the neutral zone, signaling weakening bullish momentum and accumulation risk. The DMI shows increasing bearish pressure with the -DI crossing above the +DI, while the ADX signals weakening trend strength below key thresholds. ETH heads toward key support at $1,867 and $1,823, while a recovery could target $2,106 to $2,546, offering up to 30% upside potential.
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Ethereum (ETH) continues to struggle below the $2,000 mark after briefly touching this level following the recent FOMC meeting. Bullish momentum quickly faded, and ETH is again showing signs of weakness.
Technical indicators, including the RSI and DMI, suggest increasing bearish pressure in the short term. Traders are now watching key support and resistance levels to see if ETH will continue to correct or attempt a recovery.
Ethereum’s RSI Drops After Reaching Overbought Levels
Ethereum’s RSI has sharply declined to 46.63 from 71 just two days ago, signaling a shift in momentum.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements, typically on a scale from 0 to 100. Readings above 70 indicate that an asset is overbought, while levels below 30 suggest it may be oversold
With ETH’s RSI now near 46, it has entered the neutral zone, indicating that the recent bullish momentum has faded. This could imply a period of consolidation or the risk of further downside if sellers maintain control.
Traders may expect ETH to stabilize and rebound if demand returns, or continue to correct if bearish pressure intensifies.
ETH DMI Shows Sellers Back in Control
Ethereum’s DMI chart shows the ADX has declined to 17.96 from 24.5 yesterday, indicating weakening trend strength.
The Average Directional Index (ADX) measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 indicating a weak or ranging market.
Meanwhile, ETH’s +DI has dropped to 21.17 from 34, signaling that bullish momentum is fading. Concurrently, the -DI has risen to 23.12 from 11.17, indicating that bearish pressure is increasing.
With the declining ADX and the -DI crossing above the +DI, Ethereum could face further price declines or enter a consolidation phase as sellers exert more influence on price action
Could Ethereum Rise 30% Soon?
Ethereum’s price is currently in a correction phase, and if this trend continues, it could test key support levels at $1,867 and $1,823.
A break below these zones could open the door for a deeper decline towards $1,759, with the risk of ETH dropping below $1,700 for the first time since October 2023.
However, if Ethereum can reverse its current downtrend and regain bullish momentum, it could push towards the resistance level at $2,106.
A stronger rally could see ETH targeting $2,320 and even $2,546, offering a potential upside of around 30% from current levels.
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