[Analysis] "Ethereum, technical indicators enter 'oversold' zone…short-term rebound expected"

Minseung Kang

Summary

Ethereum (ETH) has weakened over the past two weeks and an oversold signal was detected in technical indicators.
Analysts suggested a short-term bottom formation and rebound possibility following the RSI decline.
Whether the support levels of 3900 dollars and 3800 dollars hold was cited as a major variable for future price movement.

Ethereum (ETH) prices have weakened over the past two weeks, and an oversold signal has been detected in technical indicators. The market has raised the possibility of a short-term bottom forming and a rebound.

On the 26th, according to cryptocurrency-focused outlet Cointelegraph, cryptocurrency analyst Coin Bureau said, "The 4-hour Relative Strength Index (RSI) fell below 15 for the 19th time in the past 10 years," calling it a rare signal.

Analysts noted that, having entered a selling-exhaustion zone, a short-term rebound is possible. Analyst Mikibull Crypto said, "The RSI has entered an area that triggers a rebound," suggesting a potential short-term bottom. Max Crypto also said, "The daily RSI is the lowest since June this year," and added, "In past similar phases, there was a 134% increase over two months."

However, whether support levels hold was pointed out as a key factor for future direction. Analyst Crypto Devil stated, "If 3900 dollars hold, the downward moving average near 4100 dollars can be retested." Cryptocurrency analyst Zelle forecasted, "If 3800 dollars are not defended, an adjustment to the 3400 dollars support level is inevitable."

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