Ethereum gives rare sales signal, for the first time since April

Ethereum (ETH) has lost a lot of terrain in recent days and has even dropped below the limit of 4,000 dollars. Because of that sharp fall, the coin now shows signals that according to analysts rarely occur. However, it is a signal that offers hope for a possible trend remote.

Rare signal at Ethereum

After a decrease of twenty percent in two weeks, analysts speak of a rare signal. Only nineteen times in the last ten years, the RSI has dived under 15. RSI stands for Relative Strength Index and measures the power and speed of price movements to determine whether an asset has been purchased or sold over.

Although the ETH race turns red, this low rating gives that a trend remote is ahead. Crypto analyst Coin Bureau calls it in an X-post “a signal that often precedes a bullish change”. In June, a similar RSI decrease led to a rally of 134 percent within two months.

Analyst Mickybull Crypto is also optimistic. “We are again in the area where Bullish Reversals often start. The local soil seems set,” he writes on X.

Ethereum has to hold on to this level

Nevertheless, caution is required. Despite the extremely low RSI, a trend removal is no certainty. Technical analysts point to multiple levels that Ethereum absolutely has to hold to prevent a deeper correction. For example, around $ 3,800 to $ 3,900, the area is the first important support.

According to analyst Jelle, a breakthrough below could lead to an acceleration towards $ 3,400. In the most pessimistic scenario, the race can even fall back to the zone between 3,000 and $ 3,300. This would mean a decrease of 23.5 percent in the worst scenario compared to the current level.

Macroeconomic factors

The Ethereum course is not only under pressure due to technical signals, but also due to increasing uncertainty on a macro-economic level. In particular, the recent statements by Jerome Powell, chairman of the American Federal Reserve (FED), are putting the market on.

Powell called shares earlier this week “highly valued”. That was a reason for investors to sell risk-assets such as crypto and tech shares en masse. For Ethereum and the wider cryptomarkt, the interest rate policy of the Central Bank is of great importance. A lower interest rate means cheaper loans, more liquidity and a more attractive climate for speculative investments such as crypto. If an interest reduction is not forthcoming, that can slow down the recovery of Ethereum.