Ethereum is now at risk of falling to its 5-month low after it continued its downtrend for more than 3 months. However, crypto netizen believes that Ethereum will make a comeback.
Ethereum has been on a downtrend since August. During the peak of the cycle, ETH rose above $4,800 and thereafter started to crash. It has not yet found the floor price; as such, ETH is still crashing as it currently trades at $2,913.
Although the bulls stepped in with a few green candlesticks to halt the crash, they could only temporarily halt the crash, but could not change the direction of the price movement.
The chart below shows an enlarged image of Ethereum’s downtrend, where it makes lower highs and lower lows. The support level at $3,800 tried to give the crashing prices a solid platform to land on; however, the bear pressure was too high, and ETH penetrated through and continued its downtrend.
Death cross confirms bear’s existence
On the technical side, a death cross happened, confirming the strong presence of the bears. The death cross occurs when the 50-day Moving Average (MA) crosses the 200-day MA from above. The death cross is usually followed by a further crash. Given this, Ethereum is at high risk of falling further to the support level near $2,400, which is a low that ETH reached 5 months ago.
It’s not just the death cross that flags a bearish condition, but the Relative Strength Index (RSI) is also menacingly close to the oversold region. With the RSI heading into the oversold region, the prices could further fall.
Despite all these technical signs showing the presence of the bears, crypto netizen Michael van de Poppe still believes that ETH will make a recovery and head upwards.
Focusing on the ETH/BTC pair, Poppe states that ETH’s price of 0.032 BTC is the perfect spot to buy. Meanwhile, another catalyst that could boost the price is the upcoming Fusaka upgrade, which is set to go live on December 3. The upgrade will enable rollups to operate more efficiently, reducing gas costs and settlement times.
