Ethereum (ETH) faces sharp corrections and has declined 11% over the past week as bearish momentum continues to dominate. The relative strength index (RSI) remains weak, indicating a lack of strong purchase pressure, and the directional motion index (DMI) confirms that the seller is still in control.
Furthermore, the exponential moving average (EMA) is in a solid, bearish structure, suggesting that ETH could quickly test its key support levels at $1,756, potentially below $1,700 for the first time since October 2023.
ETH RSI shows lack of purchasing pressure
The Ethereum Relative Strength Index (RSI) is currently at 34.4, recovering slightly after a brief fall to 27.4 yesterday. The RSI has been below the 50 mark for three consecutive days, indicating that the bearish momentum remains dominant.
RSI measures the speed and magnitude of recent price changes to assess whether an asset is being over-acquired or oversold.
While RSIs above 70 usually show excessive conditions, suggesting possible pullbacks, RSIs are oversold conditions for signals below 30, meaning sales pressures may be oversized and bounces may be imminent.
eth rsi. Source: TradingView.
With Eth’s RSI currently at 34.4 to 34.4, the assets are still in bearish territory, suggesting that the extreme sales pressure seen yesterday has been slightly eased.
Short dips below 30 indicate oversold conditions, which often lead to short-term relief rally. However, for ETH to regain bullish momentum, the RSI will need to climb above 50, indicating a shift in market sentiment.
Until then, upward movements could face resistance, and the wider trend remains weak unless sustained purchasing pressure pushes ETH out of this bear zone.
Ethereum DMI shows that the current downtrend is strong
The Ethereum Directional Movement Index (DMI) chart shows its average directional index (ADX) is currently 29.82, up from 21.9 yesterday.
ADX measures trend strength, with values above 25 showing a strong trend, and measurements below 20 suggest a weak or non-existent trend. Given the sharp rise in ADX, we see that the ongoing downtrend in ETH is being strengthened.
+DI (positive directional index) fell from 23.1 to 15.4 on the past day, while -DI (negative directional index) surged from 27.3 to 37.8, strengthening seller dominance in the market.
ETH DMI. Source: TradingView.
-DI is significantly above +DI, indicating that the bearish momentum is strengthened, and sellers continue to control ETH’s price action.
The decrease in +di suggests that purchasing pressure is weakening, making it more difficult for ETH to recover. Unless +di starts to rise and cross beyond -DI, the price of ETH can continue to be under pressure.
Given that ADX is approaching 30 and still climbing, the downtrend appears to be well established, and short-term relief rally could face strong resistance before a meaningful trend reversal occurs.
Ethereum is still struggling for under $2,000
The Ethereum Exponential Moving Average (EMA) line displays a very bearish setup, with long-term EMA placed below the long-term one.
This alignment confirms the continued downward momentum as ETH has declined by more than 11% over the last 24 hours. If the current trend persists, ETH can test critical support for $1,756. This is a level where we can determine whether further decline is imminent.
This support breakdown below exposes Ethereum prices to fall below $1,700, a level not seen since October 2023, further strengthening bearish sentiment in the market.
ETH price analysis. Source: TradingView.
However, if ETH can reverse the downtrend, the initial critical resistance to recovery would be $1,996. A successful breakout above this level can cause a stronger recovery, potentially pushing ETH towards the next resistance at $2,320.
With bullish momentum accelerated, Ethereum could extend its profits towards $2,546. This is the level that indicates a complete change in the trend structure.
To make this happen, ETH will require sustained purchasing pressure and bullish EMA crossovers, indicating a transition from the current bearish stage.
