The second-largest digital asset plunged to its lowest level since early April as market-wide selling intensified amid rising tensions between the United States and Iran.
Analysts caution that a deeper correction could be underway, but one key technical indicator points to a possible rebound.
Is a Further Slump Coming?
ETH fell below $2,100 several hours ago before recovering slightly to about $2,150, according to CoinGecko data, marking an approximately 8% decline over the past week. Prominent analyst Ali Martinez noted that Ether appears to be breaking down from another flag pattern and highlighted the $1,100 area as an important accumulation zone.
About a week ago, Martinez described the $2,200–$2,400 band as a “no-trade zone,” arguing that only a decisive, sustained close outside of that range would signal the next major directional move.
Martinez has also pointed to other worrisome signals, including a rising balance of ETH held on exchanges—which typically increases selling pressure—and a TD Sequential indicator that has flashed a sell signal.
Crypto Rover weighed in on X, telling his 1.5 million followers that Ether’s price action resembles the setup seen in 2022, implying the current cycle’s weakness may continue. Similarly, Sjuul | AltCryptoGems suggested the cryptocurrency has lost momentum, warning that the price has fallen back to the lower channel band and is threatening to break below it. “Either buyers step in soon, or things could turn ugly,” he added.
The Silver Lining
Despite the bearish backdrop, Ethereum’s Relative Strength Index (RSI) signals a potential turnaround. The RSI is a momentum oscillator that measures the speed and magnitude of recent price moves and is commonly used to identify potential reversal points.
The indicator ranges from 0 to 100: readings below 30 generally indicate oversold conditions and the possibility of a rebound, while readings above 70 suggest overbought conditions and a higher risk of correction.
ETH’s RSI fell to around 23 a few hours ago—the lowest level since early February—and currently sits near 30, which still leaves room for a bullish recovery if buying pressure returns.
- ETH RSI, Source: CryptoWaves
Traders and investors will be watching price action around key support levels and monitoring on-chain metrics and indicators like RSI and TD Sequential to determine whether buyers will step in or the correction will deepen.