{"id":50425,"date":"2025-04-09T11:57:19","date_gmt":"2025-04-09T11:57:19","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ethereum-drops-5-but-signals-rebound-toward-7000\/"},"modified":"2025-04-09T11:57:19","modified_gmt":"2025-04-09T11:57:19","slug":"ethereum-drops-5-but-signals-rebound-toward-7000","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ethereum-drops-5-but-signals-rebound-toward-7000\/","title":{"rendered":"Ethereum drops 5% but signals rebound toward $7,000"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<ul>\n<li>Weekly RSI falls below 30, indicating oversold conditions.<\/li>\n<li>Historically, similar conditions preceded 200%+ rebounds.<\/li>\n<li>ETH could rise towards $6,500&ndash;$7,000 if the reversal is confirmed.<\/li>\n<\/ul>\n<p class=\"\" data-start=\"79\" data-end=\"659\">Ethereum, the world&rsquo;s second-largest cryptocurrency by market capitalisation, has fallen more than 5%.<\/p>\n<p class=\"\" data-start=\"79\" data-end=\"659\">As the digital asset struggles to hold above $2,000, analysts are focusing on a combination of technical signals and on-chain data to determine whether the current price action signals a broader trend reversal.<\/p>\n<p data-start=\"79\" data-end=\"659\"><\/p>\n<p data-start=\"79\" data-end=\"659\">Source: <a href=\"https:\/\/coinmarketcap.com\/currencies\/ethereum\/\">CoinMarketCap<\/a><\/p>\n<p class=\"\" data-start=\"79\" data-end=\"659\">Ethereum is now testing the same levels it bounced from recently, which also correspond with its all-time high from 2018, suggesting a potential market bottom could be forming.<\/p>\n<h2>Ethereum hits the realised price level<\/h2>\n<p class=\"\" data-start=\"740\" data-end=\"1173\">One of the more significant developments is that Ethereum has slipped below its realised price of $2,000 &mdash; a metric that calculates the average price at which all ETH in circulation last moved.<\/p>\n<p class=\"\" data-start=\"740\" data-end=\"1173\">Historically, this level has acted as a rare and powerful signal for long-term investors. The last time Ethereum traded below its realised price was in March 2020.<\/p>\n<p class=\"\" data-start=\"1175\" data-end=\"1523\">With ETH now back below this line, some historical parallels are being drawn.<\/p>\n<p class=\"\" data-start=\"1175\" data-end=\"1523\">Back in 2020, Ethereum went on to stage a massive recovery that eventually led to its all-time high above $4,800 in November 2021.<\/p>\n<p class=\"\" data-start=\"1175\" data-end=\"1523\">The return of this condition raises the probability of a similar upward move in the coming months, according to long-term trend indicators.<\/p>\n<h2>RSI drops below key threshold<\/h2>\n<p class=\"\" data-start=\"1589\" data-end=\"1908\">Technical analysis shows that the weekly relative strength index (RSI) &mdash; a momentum oscillator used to assess overbought or oversold conditions &mdash; has dropped below 30, a level not seen since the bear market bottoms of 2018 and 2022.<\/p>\n<p class=\"\" data-start=\"1589\" data-end=\"1908\">Such low RSI readings have historically marked generational buying zones for Ethereum.<\/p>\n<p class=\"\" data-start=\"1910\" data-end=\"2249\">This drop in RSI aligns with ETH&rsquo;s current price testing its 2018 high, a support level it has not touched since March 2023.<\/p>\n<p class=\"\" data-start=\"1910\" data-end=\"2249\">These conditions suggest the selling pressure may be nearing exhaustion, which could set the stage for a reversal.<\/p>\n<p class=\"\" data-start=\"1910\" data-end=\"2249\">Notably, previous periods of such low RSI levels coincided with the start of extended bull markets.<\/p>\n<h2>Network activity slows post-merge<\/h2>\n<p class=\"\" data-start=\"2307\" data-end=\"2653\">Despite these bullish long-term signals, Ethereum&rsquo;s short-term fundamentals paint a more cautious picture.<\/p>\n<p class=\"\" data-start=\"2307\" data-end=\"2653\">A decline in daily active addresses, a drop in transaction fees burnt, and an increase in supply following the Merge have all indicated weaker on-chain activity.<\/p>\n<p class=\"\" data-start=\"2307\" data-end=\"2653\">This combination reflects waning short-term interest among users and traders.<\/p>\n<p class=\"\" data-start=\"2655\" data-end=\"3014\">However, historical analysis shows that such phases of reduced activity often precede sharp price recoveries.<\/p>\n<p class=\"\" data-start=\"2655\" data-end=\"3014\">In earlier cycles, dips of similar magnitude have resulted in average price gains exceeding 200% in the following months.<\/p>\n<p class=\"\" data-start=\"2655\" data-end=\"3014\">For this reason, some investors are watching closely, considering the current price region to be a potential accumulation zone.<\/p>\n<h2>Indicators suggest bottom near<\/h2>\n<p class=\"\" data-start=\"3085\" data-end=\"3381\">The current convergence of technical and on-chain data points toward Ethereum approaching the end of its current downtrend.<\/p>\n<p class=\"\" data-start=\"3085\" data-end=\"3381\">Price touching the 2018 high, RSI dropping below 30, and falling below the realised price of $2,000 are all rare events that tend to occur near major market turning points.<\/p>\n<p class=\"\" data-start=\"3383\" data-end=\"3691\">While Ethereum continues to face pressure in the short term due to muted network activity, long-term signals suggest that the asset may be near a bottom.<\/p>\n<p class=\"\" data-start=\"3383\" data-end=\"3691\">If past patterns repeat, Ethereum could see a substantial recovery from here, potentially climbing towards the $6,500 to $7,000 range over the next cycle.<\/p>\n<p class=\"\" data-start=\"3693\" data-end=\"3885\">As of now, Ethereum remains a key focus for both retail and institutional market participants, who are monitoring for confirmation of trend reversal indicators before making significant moves.<\/p>\n<p>The post <a href=\"https:\/\/coinjournal.net\/news\/ethereum-drops-5-but-signals-rebound-toward-7000\/\">Ethereum drops 5% but signals rebound toward $7,000<\/a> appeared first on <a href=\"https:\/\/coinjournal.net\">CoinJournal<\/a>.<\/p>\n<p><a href=\"https:\/\/coinjournal.net\/news\/ethereum-drops-5-but-signals-rebound-toward-7000\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Weekly RSI falls below 30, indicating oversold conditions. Historically, similar conditions preceded 200%+ rebounds. ETH could rise towards $6,500&ndash;$7,000 if the reversal is confirmed. Ethereum, the world&rsquo;s second-largest cryptocurrency by market capitalisation, has fallen more than 5%. As the digital asset [&hellip;]<\/p>\n","protected":false},"author":3947362361,"featured_media":50426,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/50425"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362361"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=50425"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/50425\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/50426"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=50425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=50425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=50425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}