Ethereum (ETH), Oversold Rebound 'Stops'...Frustrated at $1,850 Barrier

▲ Ethereum (ETH)/ChatGPT Generated Image

Ethereum (ETH) rebounded from the oversold zone but was once again halted by the $1,850 barrier. If the $1,650 support level collapses, the downward trend could deepen further.

According to financial media outlet FXLeaders on August 4 (local time), Ethereum's Relative Strength Index (RSI) rebounded from the oversold zone. However, the price broke below the short-term uptrend line and remained below the 50-day Exponential Moving Average (EMA).

The break below the uptrend line was assessed as a signal that the weeks-long correction trend has accelerated. Below the 50-day EMA, mid-term upward momentum also weakens. Each time there's a rebound, selling pressure surges, preventing buying power from reversing the trend.

It is difficult to determine a trend reversal based solely on the RSI rebound. If selling pressure continues structurally, the oversold condition could persist for several weeks. With technical resistance and weak upward momentum appearing simultaneously, the risk of further decline remains.

The 50-day EMA is located near $1,850. Ethereum needs to decisively break above this price for the rebound's credibility to increase. Below $1,850, the current movement is analyzed as being closer to a temporary relief bounce rather than a trend reversal.

On the downside, the area between $1,700 and $1,650 was identified as a key support zone. As this was a price range where past rebounds were thwarted, a break below this zone could quickly test lower prices. Ethereum's recovery hinges on breaking above $1,850 and defending $1,650.

[Article Key Summary]

-Ethereum's Relative Strength Index (RSI) rebounded from the oversold zone, but the downtrend continued.

-The 50-day Exponential Moving Average (EMA) at $1,850 was identified as a key resistance level preventing a trend reversal.

-A break below the $1,700 to $1,650 range increases the risk of further decline.

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