Cryptocurrencies are no strangers to volatility. While highs and lows keep traders on their toes, experts’ insightful observations can clarify the chaos. Ethereum (ETH), one of the frontrunners in the crypto race, has been grappling with bearish winds, but could this be the calm before the storm?
Recent market events have seen ETH undergo significant selling pressure, a factor many attribute to its current bearish phase. However, as always, the cryptocurrency sphere is rife with varying perspectives, some of which offer a glimmer of hope amidst the apparent downturn.
Glassnode Founders Weigh In on Ethereum’s Bearish Trajectory
Yann Allemann and Jan Happel, the brains behind Glassnode, recently offered their viewpoint on the ongoing Ethereum trend. Broadcasting their thoughts under the shared X (formerly Twitter) handle, Negentropic, the duo posited that the selling pressure Ethereum currently faces might very well be the precursor to a breakout.
ETH’s past week – Key pivot at $1,680: potential for a breakout – Bearish RSI & selling pressure signal ongoing momentum– Oversold state entices long-term buyersCaution advised: Keep an eye on resistance levels for upward movement.@HenrikZeberg#ETH #Ethereum #BITCOIN… pic.twitter.com/zim0yk8ROj
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) August 23, 2023
For these industry veterans, the key lies at the $1,680 mark. A pivot around this price could potentially set the stage for a significant bullish turn.
An ambitious push towards the $1,700 was halted at $1,685. The road ahead appears to hinge on the ability of bullish forces to galvanize demand around the $1,675 bracket. Conversely, a fall to the $1,632 mark could serve as foundational support, potentially fueling an upward trajectory.
Technical Indicators Pointing the Way?
Analyzing cryptocurrency movements isn’t just about price; technical indicators can often illuminate the path ahead. The Relative Strength Index (RSI), for instance, can provide insights into market momentum.
A glance at Ethereum’s daily chart reveals an interesting play with the RSI. Bulls seem to have taken aim at the 21.85 mark on the RSI, propelling it to a more optimistic 32.86.
Despite the fact that Ethereum is still entrenched in an oversold phase, sustaining the buying pressure remains paramount. If bulls manage to maintain this momentum, Ethereum could well veer off its bearish course, signaling brighter days ahead.