Ethereum is one of the closely watched tokens after Bitcoin, which has plunged by over 5% since the early trading hours. The price reached the support; it bounced a few days before, which is also the 2018 high. This suggests the ETH price rally is currently trading at generational lows, and hence, the bottom of the prevailing bearish action could be nearby.
The second-largest crypto, Ethereum, has been displaying massive strength for over a while that largely reflects its sustainability with an intent to maintain a healthy upswing. However, the token tests the 2018 highs for the first time since March 2023, suggesting the bottoms could probably be in. Additionally, the weekly ETH chart also hints towards a potential reversal, which may revive a decent ascending trend.
The main thing to observe in the weekly chart of Ethereum is the RSI, which has reached the lower threshold after a long time. The weekly RSI has dropped below 30 just a couple of times before, during the bottoms of 2018 and 2022. Currently, the levels have reached a similar range, which suggests the ETH price bottom could be in. The second reason to be bullish on Ethereum is that the current price has dropped below the ETH realized price of $2000.
The current price slipping below the realized price is a rare event that occurred only once before now. The last time this happened was in March 2020, when the ETH price dropped from $283 to $019. Now that the event has occurred again, history is also expected to repeat, which could trigger a huge ETH bull run towards a new ATH, probably above $6500 to $7000.
In the short term, the Ethereum price slipping below $2000 hints towards a lot of eyes watching it. The decline in active addresses, lower fees burnt, and supply bump post-merge hint at a waning interest. Historically, these dips set the stage for major rebounds and with over 200% average run-up after past drops, this could be a huge buy zone. Therefore, the ETH price seems to be at the foothill of a massive explosion, which may elevate the levels close to a 5-digit figure soon.
