Crypto

RSI Extreme Oversold Levels Should Provide ETH Support

  • Ethereum Price Drops to $1,100 Triggering Extreme Oversold RSI Levels.
  • Bitcoin price has plunged 15% since breaking out of a shorter bearish flag pattern.
  • Ripple price drops 16% as it breaks out of a bearish pennant, forecasting a target target of $0.221.

TO UPDATE: Ethereum Price Prediction it continues to be a high risk activity as the second largest cryptocurrency continues to fall. ETH price fell to $1,100 during the Asian trading session on Tuesday and has since recovered to levels around $1,200 in the European session. The rapid pace at which the price of Ethereum fell over the weekend and Monday in a combination of market-wide risk-off moves and intrinsic issues lead to the issues with Celsius and the Ethereum Staked (stETH) de-peg seems to have faded a bit. in the stream Bloodbath in the crypto market, targeting an alternative scenario is a very risky proposition, but having stated that, a bullish pullback in ETH could be due in the short term as the relative strength index is at oversold levels not seen since 2019, when the Primary altcoin was trading at $120. According to Tony Montpeirous, a crypto analyst at FXStreet, the price of ETH would have to break above $1,570 for the bulls to return with any confidence.

Bitcoin price has crashed quite a bit over the weekend, taking Ethereum, Ripple, and other altcoins with it. The cause of this brutal market decline seems to be twofold: fears about the solvency of Celsius Network and the CPI announcement.

Celsius is a cryptocurrency-based lender and primary holder of Staked Ethereum (stETH), which is Ethereum staked on the Lido platform, which is a 1:1 backed ETH peg. Due to sudden bailouts, the peg between stETH and ETH has started to decouple significantly.

The imbalance is now causing a bank run on the Celsius Network. While this is one background factor destabilizing the markets, the other is the CPI (Consumer Price Index) inflation announcement on June 10, which is causing a drop over the weekend and causing markets to cascade down.

Earlier today, Celsius Network announced that it will be pausing all withdrawals, trades, and transfers between accounts. This announcement has caused many to speculate about what this could really mean for Celsius.

Cobie, the host of the UpOnly podcast, tweeted:

Bitcoin price manifests the worst

Bitcoin price has plunged 17% since June 10 after opening at $30.0082. This drop has pushed BTC to break out of the smaller bearish flag pattern, which forecasts a 30% drop to $20,560. Interestingly, the same chart also shows that the larger bear flag projects a similar target of $20,002.

While the decline seems to have stopped, investors should be cautious as a continuation could send BTC down.

BTC/USD 1-day chart

BTC/USD 1-day chart

Although unlikely, if Bitcoin price produces a daily candle close above the $52,000 level, it will create a higher high from a macro perspective and invalidate the bearish thesis. In such a case, the price of Bitcoin could rise higher to $60,000.

Ethereum price hits its target

Ethereum price set a bearish flag in late April and broke the lower trend line on May 4. Since then, ETH has plunged 52% to reach the intended target of $1,305. As the altcoin trades around this level, investors need to be patient to buy the dip or go long.

This drop broke the weekly support level of $1,401 and turned it into a resistance barrier. A continuation of the downtrend that breaks the $1,305 level could trigger a 20% nosedive to the immediate support point present at $1,050.

ETH/USD 1-day chart

ETH/USD 1-day chart

However, if buyers step in and buy ETH at a discounted price, there is a chance of recovery. A quick turnaround from the $1,401 hurdle to a support level will indicate a resumption of bullish momentum. This development could see the price of Ethereum try to rally to $1,730.

Ripple price has a long way to go

Ripple price broke out of a bearish pennant, another bearish continuation pattern on June 10th. This development caused the price of XRP to crash by 16% in the three subsequent daily candles. As the remittance token is trading at $0.325, the risk of a further drop remains.

This technical formation forecasts a 42% drop to $0.221, and considering the current position, Ripple price could see a 32% drop. However, this move will not be a flash crash due to the $0.250 and $0.302 support levels.

XRP/USD 1-day chart

XRP/USD 1-day chart

While things look relatively less bearish for Ripple price, a rally above $0.578 will be needed for the bulls to breathe a sigh of relief. A daily candlestick close above $0.657 will invalidate the bearish thesis by creating a higher high.

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