Ethereum revisits historical indicator low last touched in 2019 at $120
- ETH price revisits historical RSI low, which commenced the 2019-2021 bull run.
- Ethereum price has impulsively fallen, and detecting a conventional reversal signal will be challenging.
- An early invalidation of the bearish downtrend could be a breach at $1570 for investors willing to take on a high-risk, high-reward setup.
Ethereum price should be the chart of the week for traders, scalpers and investors alike. Volatility spikes in both directions are probable.
Ethereum price has shaken the grounds
Ethereum price has fallen below $1250, a level unseen since 2021. The bearish collapse has happened in a nearly free-fall fashion, making trading the Layer 1 token highly risky. Extracting profitable trade setups will be no easy plight for professional traders. It is best to seek counsel from more experienced traders if you can. The newly breached liquidity level will undoubtedly pour in high volatility.
Ethereum price has analysts wondering where a relevant zone will begin to form. The Relative Strength Index provides significant context as the current $1236 ETH price now trades at the historical RSI level of 7. The last time ETH traded at this historical level, the price was $120 in 2019. This anomaly provokes the idea that a range and potential reversal signal afterward is in the cards for the Ethereum price. Bullish confluence is also found as the 200-weekly moving average has been breached at current price levels. However, if the bulls fail to provide support, a breach into the 2018 $800 weekly order block is a likely target for bears holding onto their short positions.
ETH/USDT 8-Hour Chart
Invalidation for traders looking to take a gamble will be the previous wave 4 degree within this week's downtrend at $1536. If the bears can breach this level, a spike into $1800 could occur, resulting in a 45% increase from the current Ethereum price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
