Ethereum, the second-largest cryptocurrency after Bitcoin, has recently experienced a price drop of over 5% in the early trading hours. The price of Ethereum has reached a crucial support level, bouncing back from its 2018 high, indicating that the current bearish trend may be approaching a bottom.
Despite the recent price drop, Ethereum has shown significant strength over the past few months, demonstrating its resilience and potential for a healthy upward movement. The token is now testing its 2018 highs for the first time since March 2023, suggesting that a reversal may be on the horizon. The weekly chart of Ethereum also indicates a potential turnaround, which could lead to a sustained upward trend.
One key indicator to watch in the weekly chart is the Relative Strength Index (RSI), which has dropped to levels seen during previous market bottoms in 2018 and 2022. This suggests that the price of Ethereum may have bottomed out and could be poised for a significant rebound. Additionally, the current price of Ethereum has fallen below the realized price of $2000, a rare event that has historically preceded major bull runs.
In the short term, the price of Ethereum slipping below $2000 has attracted a lot of attention from investors. While there has been a decline in active addresses, lower fees burnt, and a supply increase post-merge, these factors have historically set the stage for significant price rebounds. With an average run-up of over 200% after previous drops, this could be a prime buying opportunity for Ethereum.
Overall, the current market conditions suggest that Ethereum is on the verge of a major price explosion, with the potential to reach new all-time highs of $6500 to $7000 and potentially even higher. As investors keep a close eye on Ethereum, it is clear that the token is at the cusp of a significant upward movement that could propel it to new heights in the near future.