The post ETH Price Falls by 8%: Will the Decline Accelerate? appeared on BitcoinEthereumNews.com.

Ethereum (ETH) price has dropped nearly 8% in the last 24 hours, nearing the loss of its $400 billion market cap. The sell-off has pushed ETH’s RSI to 27.1, its lowest since December 20, signaling oversold conditions and weak market sentiment. The ADX indicates that the current downtrend is strong, with bearish momentum dominating as the -DI surpasses the +DI. If the downtrend continues, ETH could test critical support levels, but a reversal might allow it to challenge resistance and regain upward momentum. Ethereum RSI Reached Its Lowest Level Since December 20 The Relative Strength Index (RSI) for Ethereum has plunged to 27.1, a sharp drop from 66.3 within just one day. RSI is a technical momentum indicator that measures the speed and magnitude of price movements on a scale from 0 to 100. Typically, values above 70 indicate overbought conditions, suggesting a potential pullback, while values below 30 point to oversold conditions, often signaling a possible recovery. ETH’s current RSI level of 27.1 marks its lowest reading since December 20, reflecting significant bearish momentum and heavy selling pressure in the market. ETH RSI. Source: TradingView At this deeply oversold level, ETH RSI suggests that the recent sell-off may be overextended, creating potential conditions for a rebound if buying interest resurfaces. However, the dramatic decline also highlights weak market sentiment, which could lead to continued downward pressure if the current trend persists. ETH DMI Shows the Downtrend Is Strong Ethereum Average Directional Index (ADX) is currently at 41.9, reflecting a strong market trend. ADX is a technical indicator that measures the strength of a trend, irrespective of its direction, on a scale from 0 to 100. Values above 25 indicate a strong trend, while values below 20 suggest weak or absent momentum. The steady growth in ETH’s ADX since December…

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Filed under: News - @ January 8, 2025 10:20 pm