{"id":461648,"date":"2022-06-12T16:34:15","date_gmt":"2022-06-12T13:34:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\/"},"modified":"2022-06-12T16:34:15","modified_gmt":"2022-06-12T13:34:15","slug":"ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\/","title":{"rendered":"# Ethereum price enters &#8216;oversold&#8217; zone for the first time since November 2018"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a245d9a4f7b3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a245d9a4f7b3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\/#%E2%80%9D_Ethereum_price_enters_%E2%80%98oversold_zone_for_the_first_time_since_November_2018_%E2%80%9C\" >&#8221; Ethereum price enters &#8216;oversold&#8217; zone for the first time since November 2018 &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\/#ETH_eyes_oversold_bounce\" >ETH eyes oversold bounce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\/#Macro_headwinds_and_a_650_Ether_price_target\" >Macro headwinds and a $650 Ether price target<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Ethereum_price_enters_%E2%80%98oversold_zone_for_the_first_time_since_November_2018_%E2%80%9C\"><\/span>&#8221; Ethereum price enters &#8216;oversold&#8217; zone for the first time since November 2018 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Ethereum&#8217;s native token Ether (ETH) entered its &#8220;oversold&#8221; territory this June 12, for the first time since November 2018, according to its weekly relative strength index (RSI).<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This is the last time <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> went oversold on the weekly (hasn\u2019t confirmed here yet). <\/p>\n<p>I had no followers, but macro bottom ticked it. <\/p>\n<p>Note, you can push way lower on weekly rsi, not trying to catch a bottom. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kLCynTKTcS\">https:\/\/t.co\/kLCynTKTcS<\/a><\/p>\n<p>\u2014 The Wolf Of All Streets (@scottmelker) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1535958675742916610?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"ETH_eyes_oversold_bounce\"><\/span>ETH eyes oversold bounce<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Traditional analysts consider an asset to be excessively sold after its RSI reading fall below 30. Furthermore, they also see the drop as an opportunity to &#8220;buy the dip,&#8221; believing an oversold signal would lead to a trend reversal.<\/p>\n<p>Ether&#8217;s previous oversold reading <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared in the week ending on Nov. 12, 2018, which preceded a roughly 400% price rally, as shown below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/193db3e4-b834-462e-9f95-79bf55b417cd.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD weekly price chart featuring oversold RSI. Source: TradingView\u00a0<\/em><\/figcaption><\/figure>\n<p>While past performances are not indicators of future trends, the latest RSI&#8217;s move below 30 raises the possibility of Ether undergoing a similar\u2014if not an equally sharp\u2014upside retracement in the future.<\/p>\n<p>Suppose ETH logs an oversold bounce. Then, the ETH\/USD pair&#8217;s im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te challenge would be to reclaim its 200-week exponential moving average (200-week EMA; the blue wave) near $1,620 as its support. <\/p>\n<p>If it does, bulls could eye an extended upside move towards the 50-week EMA (the red wave) above $2,700, up almost 100% from today&#8217;s price.<\/p>\n<p>If not, Ether could resume its downtrend, with $1,120 serving as the next target, a level coinciding with the token&#8217;s 0.782 Fib line, as shown in the chart below.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/5bd8ed28-aa90-4cbb-9b34-546caf27f574.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD weekly price chart featuring Fibonacci support and resistance levels. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Macro_headwinds_and_a_650_Ether_price_target\"><\/span>Macro headwinds and a $650 Ether price target<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The RSI-based bullish outlook appears against a flurry of bearish headwinds, ranging from persistently higher inflation to a classic technical indicator with a downward bias.<\/p>\n<p>In detail, Ether&#8217;s price decline by more than 20% in the last six days, with most losses coming after June 10, when the U.S. Labour Department reported that the inflation reached 8.6% in May, the highest since December 1981.<\/p>\n<p><strong><em>Related:\u00a0The total crypto market cap drops under $1.2T, but data show traders are less inclined to sell<\/em><\/strong><\/p>\n<p>The higher consumer price index (CPI) strengthened fears among investors that it would force the Federal Reserve to hike interest rates more aggressively while slashing its $9 trillion balance sheet. That dampened appetite for riskier assets, hurting stocks, Bitcoin (BTC) and ETH.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/685da75c-f16f-4005-8211-630b96ceaffd.png\"><figcaption style=\"text-align: center;\"><em>ETH\/USD versus SPX and BTC\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Independent analyst Vince Prince fears the latest ETH decline could extend until the price reaches $650. At the core of his downside target is a massive &#8220;head and shoulders&#8221; \u2014 a classic bearish reversal pattern with an 85% success rate in meeting its profit target, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/samuraitradingacademy.com\/7-best-price-action-patterns\/#:~:text=1B.&amp;text=The%20head%20and%20shoulders%20patterns,(the%20head)%20between%20them.\">Samurai Trading Academy<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The massive head-and-shoulder formation forecasted earlier for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\">#Ethereum<\/a> has now been completely confirmed&#8230;<\/p>\n<p>&#8230; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> is now headed towards the $650 USDT area!!! <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/R2KaqiorEd\">pic.twitter.com\/R2KaqiorEd<\/a><\/p>\n<p>\u2014 Vince Prince (@Vince_Prince_) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Vince_Prince_\/status\/1535947874818736136?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Meanwhile, Glassnode&#8217;s lead on-chain analyst, known by the pseudonym &#8220;Checkmate,&#8221; highlighted a potential DeFi disaster that could crash Ether&#8217;s price further into 2022. <\/p>\n<p>The analyst noted that the ratio between Ethereum&#8217;s and the top three stablecoins&#8217; market capitalization grew to 80% on June 11. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Ratio is now at 80%<\/p>\n<p>Market Cap of:<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&amp;ref_src=twsrc%5Etfw\">#Ethereum<\/a> = $181.58B<br \/>Top 3 Stablecoins = $144.28B<br \/>TVL in DeFi = $101.67B<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> at $1215 makes for equal Ethereum and Top 3 stablecoin market caps.<\/p>\n<p>The principle risk here is levered <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a> collateral in DeFi loans getting liquidated in a cascade <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/26u0vXnMMY\">https:\/\/t.co\/26u0vXnMMY<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/q555clRaap\">pic.twitter.com\/q555clRaap<\/a><\/p>\n<p>\u2014 _Check\u0271ate \u26a1 (@_Checkmatey_) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/_Checkmatey_\/status\/1535880643493650432?ref_src=twsrc%5Etfw\">June 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Since &#8220;most people borrow stablecoins&#8221; by providing ETH as collateral, the potential of the Ethereum network becoming less valuable than the top dollar-pegged tokens would make the debt&#8217;s value higher than the collateral itself.<\/p>\n<p>Checkmate <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/_Checkmatey_\/status\/1535882852381892610\">noted<\/a>:<\/p>\n<blockquote><p>&#8220;There is nuance as not all stablecoins are borrowed, and also not all are ON ethereum. But nevertheless, the risk of liquidations [is] a hell of a lot higher than it was three months ago.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-price-enters-oversold-zone-for-the-first-time-since-november-2018\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Ethereum price enters &#8216;oversold&#8217; zone for the first time since November 2018 &#8220; Ethereum&#8217;s native token Ether (ETH) entered its &#8220;oversold&#8221; territory this June 12, for the first time since November 2018, according to its weekly relative strength index (RSI). This is the last time $ETH went oversold on the weekly (hasn\u2019t confirmed here&#8230;<\/p>\n","protected":false},"author":1,"featured_media":461649,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvOGYxZGUzMDEtMzUzMy00NWQyLWE3NzItNmFjNTlmMzliODMyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74983,82402,74891,74938,74939,112089,70550,70551,70552,73711,73785,71407],"class_list":["post-461648","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-decentralization","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-market-analysis","tag-quantitative-easing","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-investments","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/461648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=461648"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/461648\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/461649"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=461648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=461648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=461648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}