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Ethereum collapses 32% in a week, with an 18% drop in the last 24 hours alone, as the crypto market as a whole records its largest dip this year. The Ethereum (ETH) price action on the daily chart shows a dramatic decline with the current price at $2,350 down by 12.35% for the day. This drop has pushed Ethereum below the lower Bollinger Band, currently at $2,650, a key index for indicating that the asset may be oversold. ETH 1D chart – Aug. 5 | Source: crypto.news The Bollinger Bands indicate heightened volatility, with the bands expanding significantly. Ethereum’s position below the lower band typically suggests the asset is oversold and might be due for a bounce back, indicating bearish pressure if the price does not recover soon. ETH’s On-Balance Volume (OBV) confirms this bearish sentiment. The OBV currently stands at 43.49 million, having declined sharply in tandem with the price drop, suggesting that sell pressure is substantion. As more volume is associated with downward price movements, if ETH’s OBV continues to decrease, this would indicate persistent selling and potential for further declines in Ethereum’s price. ETH weekly chart at critical condition The weekly chart shows Ethereum’s situation does not look much better. The price has broken below the lower Donchian Channel, which is at $2,111. Currently, the upper and middle Donchian Channels are at $3,977 and $3,044, respectively.  ETH 1W chart – Aug. 5 | Source: crypto.news This breach of the lower channel indicates a strong bearish trend, as it shows the price has reached new lows not seen in the past 20 trading periods. A weekly close below this level could signal further downside risk. Moreover, the Relative Strength Index (RSI) on the weekly chart currently stands at 38.55, down from a recent high of 54.90. If the…

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Filed under: News - @ August 5, 2024 2:26 pm