Ethereum Price Drops by 578 RSI Hits Lowest Level Since August 2023

Coin Realm reports:
Ethereum’s price has fallen by 5.78% in the last 24 hours, with its Relative Strength Index (RSI) reaching the lowest level since August 2023, indicating an oversold condition.
Market veteran Michaël van de Poppe revealed this in a recent report. This plunge signifies a significant bearish momentum, suggesting that Ethereum might be oversold. Moreover, altcoins have reached the lowest RSI levels historically or for this cycle, indicating a widespread market capitulation.
#Ethereum has reached its lowest RSI (daily) since the crash on August 23rd. #Altcoins have reached the lowest RSI ever or for this cycle. Clear capitulation. pic.twitter.com/9eehaITkQI — Michaël van de Poppe (@CryptoMichNL) July 5, 2024
Potential Downside Targets for Ethereum’s Price
Ethereum’s price is currently hovering around $2,956, having fallen by 5.78% in the past 24 hours. Key resistance lies between $3,800 and $4,200, which Ethereum has struggled to break through, leading to its recent decline. The price is now facing critical support at $2,480. A breach below this level could trigger further declines to $2,145.
Despite a drop in trading volume, it remains stable, indicating no panic selling. This stability suggests that, despite bearish market sentiment, a potential rebound or consolidation phase may be imminent.
Impact of Price on Holder Profitability
Analyzing Ethereum addresses, one can see different positions based on the current price of $2,956. Notably, a considerable number of addresses are “out of the money,” having purchased ETH at prices ranging from $2,951.47 to $3,400.33, and are therefore currently incurring losses.
Ethereum Price GIOM | IntoTheBlock
Market Sentiment and Investment Flows
Meanwhile, according to the crypto Basic, a report by CoinShares highlighted that cryptocurrency investment products have seen a continuous outflow over the past three weeks, totaling $30 million.
Ethereum alone accounted for an outflow of $61 million. Nevertheless, exchange-traded products (ETPs) related to Bitcoin still saw an inflow of $10 million, bringing the total assets of all Bitcoin ETPs to $67.57 billion.
Interestingly, other digital assets also experienced positive net inflows. Multi-asset ETPs attracted $18 million, while Solana, Litecoin, Chainlink, and XRP recorded inflows of $1.6 million, $1.4 million, $600,000, and $300,000, respectively. Ethereum’s unique outflow data indicates an intensifying bearish sentiment surrounding the asset.