CoinDesk Reports:
Ether’s price has dropped by 5.78% in the past 24 hours, marking its lowest Relative Strength Index (RSI) since August 2023, indicating oversold conditions.
This steep decline signals significant bearish momentum and suggests Ethereum may be oversold. Additionally, altcoins have hit historically low RSI levels for this cycle, reflecting widespread capitulation in the market.
#Ethereum hits lowest RSI (daily) since August 23 crash. #Altcoins hit all-time or cycle lows. Clear capitulation. pic.twitter.com/9eehaITkQI — Michaël van de Poppe (@CryptoMichNL) July 5, 2024
Potential Downside Targets for Ethereum Price
Ether is currently hovering around $2956, having dropped by 5.78% in the last 24 hours. Key resistance between $3800 and $4200 has hindered recent attempts at recovery. Critical support now lies at $2480; a breach below this level could trigger further declines to $2145.
Despite a slight decrease in trading volume, stability suggests an absence of panic selling. This stability hints that despite bearish sentiment, a potential rebound or consolidation phase may be imminent.
Impact on Holder Profitability
Analyzing Ethereum addresses reveals varied positions based on the current $2956 price. Notably, a significant number purchased ETH at prices ranging from $2951.47 to $3400.33, currently experiencing losses.
Ethereum Price GIOM | IntoTheBlock
Market Sentiment and Investment Flow
Meanwhile, according to The Crypto Basic, a CoinShares report highlights continuous outflows totaling $30 million from cryptocurrency investment products over the past three weeks.
Ether alone saw outflows of $61 million. Nonetheless, Bitcoin-related Exchange-Traded Products (ETPs) saw inflows of $10 million, pushing total assets of all Bitcoin ETPs to $67.57 billion.
Interestingly, other digital assets saw net inflows. Multi-asset ETPs attracted $18 million, while Solana, Litecoin, Chainlink, and XRP recorded inflows of $1.6 million, $1.4 million, $0.6 million, and $0.3 million respectively. Ethereum’s unique outflow data underscores intensified bearish sentiment surrounding the asset.
