Ethereum’s Potential Breakout
Ethereum’s weekly Stochastic RSI crossover is deeply oversold, a setup that has historically triggered major price surges. Is another breakout imminent?
The weekly Stochastic RSI crossover for Ethereum (ETH) in the oversold zone is a historically bullish signal, often preceding significant price increases. Over the past five years, similar setups have consistently foreshadowed explosive rallies for Ethereum.
Before ETH reached its all-time high of $4,869.47 four years ago, the Stochastic RSI bottomed out, followed by a bullish crossover that triggered a breakout. A similar scenario unfolded during the post-election rally, when ETH reclaimed $4K after nine months of consolidation, reinforcing the reliability of the indicator.
Currently, ETH is 45.50% below that peak, and the Stochastic RSI is in extreme oversold territory. If a bullish crossover forms in the coming days, it could signal strong breakout potential for Ethereum.
Additionally, the ETH/BTC pair shows signs of reversal after recently hitting a four-year low. This reversal suggests a potential shift in Ethereum’s relative strength against Bitcoin, supporting the possibility of a recovery.
Is Ethereum on a Major Trend Shift?
On the daily chart, Ethereum has been trading at a seven-month low, a level that historically attracts strong ‘buy-the-dip’ interest. At $2,141, ETH has seen a significant outflow of 431K from Kraken, indicating potential accumulation as investors move funds off-exchange. This accumulation trend aligns with the Stochastic RSI, which is on the verge of a bullish crossover—historically a precursor to price reversals.
Meanwhile, with market sentiment remaining volatile, traders have liquidated $14.31 million in long positions over the past 24 hours.
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