Worst Week Since Mid-June for Ethereum cryptomarketbag

Armaan Shirinyan

This indicator can potentially show us where the second largest cryptocurrency on the market will act in the next few weeks.

The merge update everyone anticipated for the past few months didn’t bring the expected pump Ethereum, creating more issues than benefits for the investors. The asset’s profitability fell by more than 10%, and Bloomberg analysts believe this is not the end.

Issues with Price Speed

The 22% loss pulled ETH into the oversold zone on the Relative Strength Index and, historically, this is not a good sign for the second largest asset on the market. Investors who were earlier betting on a reversal after the asset reached oversold territory lost their holdings.

ethereum chart
Source: trading view

However, the data provided by Bloomberg is measured over a 20-day period, which is not as significant for the asset reaching the oversold zone on the RSI. For example, back in June, Ethereum reached the same oversold range and exited it only after a 30-day consolidation period.

The short term momentum on Ethereum is really bearish not only because of the RSI. A drop below important moving averages such as the 50-day moving average is a sign of an upcoming decline, given the lack of further growth factors that will push Ether back into the price range bullishly.

Ripple has introduced I Remit expanded its partnership with cryptomarketbag CryptomarketBag

The trading volume on the asset also suggests that the market is likely to face a continuation of the downtrend and Ether will drop even further. However, the recovery from the recent rate hike could have an impact on the cryptocurrency market in general.

With monetary policy easing, Ethereum and other high-risk assets may face a return to buying volume and risk seeking. Also, the current monetary policy tightening cycle is expected to last at least until early 2023.

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