This Ethereum Monthly RSI Chart Just Crashed To New Lows To Break 2022 Records, What Happened Last Time?
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The price of Ethereum is already Facing obvious downward pressure In recent days, cryptocurrencies have even dropped $2,000 for the first time since December 2023. Crash is under $2,000 Damage to already falling The next outlook for bullish sentiment is whether there will be more incoming declines, or whether the leading Altcoin is already close to the bottom.
It is worth noting that an interesting signal of a possible outcome is revealed through the Ethereum CME futures chart, where the monthly relative intensity index (RSI) just reached its lowest level recorded, surpassing the 2022 bear market reading.
Ethereum’s monthly RSI drops below 2022 levels
Crypto Analyst Tony “The Bull” Severino Highlighted A significant development in Ethereum technical indicators noted that the monthly relative strength index (RSI) of cryptocurrencies on the CME futures chart has now fallen to its lowest level recorded.
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This decline pushed RSI to the lowest point in the bear market in 2022, a period that brought Ethereum to years of lows before eventually recovering. Severino shared this observation in a detailed technical analysis article on social media platform X, which uses Ethereum’s futures monthly candlestick timeline chart.
Analysts point out that while this decline indicates strong momentum for sales, it may also form Hidden bullish divergence. This is because the last time Ethereum’s RSI fell to such an extremely high low, it eventually found its foothold at about $900 and began a price increase in the following months. Previous performances have improved Ethereum is close to the bottomdespite its current momentum. Ethereum may have found its pace of about $1,900 and is now preparing for the rise in the coming months.
However, Severino is cautious about this situation and points out that reading may also mean that sales pressure is strongest and that Ethereum can continue to be reduced to oversell conditions. Interestingly, he also made it clear that despite the potential reversal, he currently tends to be bearish on Ethereum.
Stochastic indicators point to deeper bearish periods
In addition to the RSI level, another key metric highlighted by Severino is the one-month random oscillator for Ethereum, which has now dropped below 50 points. exist Previous analysis He pointed out that the decline of Ethereum below 50 points is a characteristic of the bear land area. However, the random indicator reaches below 20 and the Extreme sales conditions.
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As shown in the figure below, past trends suggest that when Ethereum’s random oscillator enters the bear market, it usually takes several months to stabilize the asset and start a strong recovery.
At the time of writing, Ethereum traded at $1,920, with its last 24-hour low reaching $1,851.
Featured images from Unsplash, charts from TradingView.com
