- Ethereum’s price holds crucial support at $1,639, signaling a possible upward movement.
- RSI at 39.04 suggests Ethereum could be nearing oversold conditions, indicating a potential bounce.
- Ethereum has historically reversed at similar price levels, suggesting a possible recovery from $1,639.
ETH has shown support around $1,639 after bouncing off the 2018 ATH price. It has seen some heavy volatility in recent days, dropping from previous highs. ETH is currently testing a critical support level, the same price it did back in 2018. It is a well-known historical support, and many traders will watch to see if Ethereum has a reversal from here.
Ethereum’s 2018 ATH as a Critical Support Level
A lot has happened in the years that have gone by, with Ethereum’s price oscillating from its 2018 ATH to its current level. The price level of $1,639 is therefore critical, with ETH now nearing that previous ATH. Historical price action has shown significant interaction with the $1,639 level as resistance and support. As price again tests that level, the chances of price reversal become quite high.
Additionally, Ethereum’s current price level corresponds with the peak of a significant RSI dip, currently reading 39.04. This indicates that the asset is potentially oversold at this level, suggesting a possible buying opportunity. If ETH can hold above the $1,639 level, it will solidify the possibility of a bullish reversal in the near term. Therefore, market players are watching closely to see if ETH can hold this support.
The bounce-off of Ethereum price from the 2018 ATH level is not something strange in cryptocurrency market cycles. In the past, similar behaviors have been witnessed, whereby assets retest previous highs before reversing. Thus, traders vigilantly view ETH price action to see whether it can actually hold this important support level.
RSI Signaling Oversold Conditions
With an RSI of 39.04, Ethereum is considered very close to being oversold. This is a significant indicator that Ethereum could bounce very soon, for RSI levels nearing 40 are usually taken to indicate oversold markets. Such behavior occurred from Ethereum’s past price movements at similar RSI levels, marking price rebounds.
Moreover, the current RSI pattern matches several other scenarios from the past that showed Ethereum changing direction at critical price levels. The RSI alongside $1,639 price levels suggests Ethereum is primed for potential upward momentum. Hence many traders are expecting Ethereum to break out of the ongoing downtrend and make an attempt at recovering from this key support level.
Will the Price Reversal Hold for Ethereum?
ETH price action at the $1,639 support level has drawn much interest from traders. The question that still remains though is: will Ethereum’s current support hold, and will it lead to a sustainable price reversal? Given the prevailing technical setup, ETH can recover from the current support and attempt higher price levels. However, it has first to prove that it can stay above this crucial level.
