Ethereum Drops 11% as Bearish Momentum Intensifies

Ethereum (ETH) is currently experiencing a significant downturn, with its value dropping by 11% over the past week. This decline is part of a broader bearish trend that has been dominating the market. The Relative Strength Index (RSI) for ETH is currently at 34.4, indicating a lack of strong buying pressure. The RSI has remained below the 50 mark for three consecutive days, suggesting that bearish momentum is still dominant.

The RSI measures the speed and magnitude of recent price changes to assess whether an asset is overbought or oversold. An RSI above 70 indicates overbought conditions, suggesting potential for a pullback, while an RSI below 30 signals oversold conditions, implying that selling pressure may be overextended and a bounce could be imminent. With ETH’s RSI now at 34.4, it suggests that while the asset is still in bearish territory, the extreme selling pressure seen yesterday has eased slightly. The brief dip below 30 signaled an oversold condition, which often leads to short-term relief rallies. However, for ETH to regain bullish momentum, the RSI would need to climb back above 50, indicating a shift in market sentiment.

Until then, any upward movement could face resistance, and the broader trend remains weak unless sustained buying pressure pushes ETH out of this bearish zone. The Directional Movement Index (DMI) for ETH shows that its Average Directional Index (ADX) is currently at 29.82, rising from 21.9 yesterday. The ADX measures the strength of a trend, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or nonexistent trend. Given the ADX’s sharp increase, it confirms that ETH’s ongoing downtrend is strengthening. The +DI (positive directional index) has dropped to 15.4 from 23.1 in the past day, while the -DI (negative directional index) has surged to 37.8 from 27.3, reinforcing the dominance of sellers in the market.

With the -DI significantly above the +DI, it signals that bearish momentum is intensifying, and sellers continue to control ETH’s price action. The decline in +DI suggests that buying pressure is weakening, making