ETHUSD Ongoing Retracement Ends as RSI Approaches Oversold Region

ETHUSD’s ongoing retracement ends as the RSI (Relative Strength Index) approaches an oversold region. From $1521.00, the price of ETHUSD began to increase in the bulls’ favour. This led to the successful invalidation of the previous swing highs that formed as the price crashed in August and September 2023. After the successful invalidation of the previous swing highs, a notable decline occurred at the $2132.00 price. A double top formed at the $2132.00 price level, thereby increasing the chance of the resumption of the bullish trend.

 

The bullish trend eventually resumed, swiftly revealing the absence of the bulls until the resistance at $2392.00 was met. For a significant period, the selling pressure at the $2392.00 resistance led to a consolidation. The breakout from the trading range occurred in January 2024 as the bullish trend resumed. The recent major retracement seems to have ended with the formation of a double bottom at $2168.00.

ETH Key Levels

Demand Levels: $2168.00, $2100.00, $1906.00
Supply Levels: $2392.00, $2614.00, $2718.00

What are the Indicators Saying?

The recent major retracement occurred as a result of the RSI’s indication. The price’s higher highs diverged from the RSI’s lower highs. According to the Simple Moving Average and the RSI, a short decline to $2168.00 might eventually lead to a massive surge to the upside.

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