Ethereum Weekly RSI Drops To Lowest Level Since May 2022
Ethereum (ETH) fell 13.8% last week and is currently trading at a support level of $2,000. While the weekly relative intensity index (RSI) of digital assets hit its lowest point in three years, analysts warn that further drawbacks may still be ahead.
Ethereum RSI is at its lowest level in years
U.S. President Donald Trump’s trade tariffs on Canada and Mexico came into effect earlier today, adding to concerns about an imminent recession. According to the latest data From Kalshi, the likelihood of a recession in 2025 is 39%.
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The wider crypto market also felt the pressure from these tariffs, with total market value falling from $3.7 trillion on December 14 to $2.8 trillion at the time of writing. Major cryptocurrencies such as Bitcoin (BTC) and ETH have been significantly affected over the past 24 hours, down 7.1% and 8.9% respectively.
Unlike BTC, BTC sees an extraordinary 2024 with multiple new all-time highs (ATHs), and ETH has struggle Since its peak in November 2021 reached $4,878. Over the past year, ETH has dropped 41.6%, while BTC has risen 26%.
The latest cryptocurrency market retreat adds ETH challengelower it to $2,000 with psychological significance. Crypto analyst Jesse Olson noted that huge sales pressure has raised ETH’s weekly RSI to 35.87, the lowest reading since May 2022.
Olson further explained that the bottom did not reach May 2022 as ETH subsequently dropped 60%. If ETH follows a similar trajectory, it could drop 60% from $2,000, possibly to around $800.
Crypto Analyst Merlijn Trader echo Olson’s concerns indicate that Ethereum is currently “playing the waiting game”. Analysts stress that ETH is close to a critical “constitute or rupture” level on RSI.
Analysts urge not to panic about selling ETH
Despite increased macroeconomic uncertainty due to Trump’s trade tariffs, some analysts are still confident that ETH is approaching its bottom and may soon resume its uptrend. In X post, a crypto analyst Comment:
Ethereum is currently retesting 21-day EMA on the 3-month table. ETH has never turned off candles below this level. We either have to witness history or we are very close to the bottom. Be very careful to panic for sale!
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Thanks to recent analysis, ETH Exchange balances already have hope of the second largest cryptocurrency Falled To the 9-year low, strengthening the supply scarcity narrative of digital assets. At press time, ETH was trading at $2,126, down 8.9% in the past 24 hours.
Featured images from Unsplash, charts from X and TradingView.com
