Ethereum Plummets 18% as Technical Indicators Signal Oversold Market

On March 11, 2025, Ethereum experienced a significant price drop, plummeting from $2150 to $1750. This dramatic decline has raised concerns among investors and analysts about whether this marks the beginning of an extreme downtrend for the cryptocurrency.

The day started with Ethereum breaking out from an expanding triangle pattern at 00:45 UTC on March 10, forming a spike and range pattern. This breakout was supported by a golden crossover in the Moving Average Convergence Divergence (MACD) indicator. The range subsequently broke out to the upside at 09:10 UTC, reaching a high of $2152, further corroborated by a golden cross in the MACD. However, by 09:20 UTC, the Relative Strength Index (RSI) moved into the overbought area, signaling an overbought market condition and suggesting a potential reversal or pullback.

At 10:00 UTC, a death cross in the MACD put additional downward pressure on the price, leading to a drop and the formation of a channel. This channel broke out to the upside at 14:55 UTC, supported by another golden cross in the MACD. However, instead of forming a spike, the price formed a converging triangle pattern, which eventually broke out to the downside. This downward movement was not sustained, as a minor range formed and broke out to the downside at 17:00 UTC, corroborated by a death cross in the MACD, forming a spike and channel pattern.

During this period, the RSI dropped below the level of 30, indicating an oversold market condition for Ethereum. The channel broke out to the downside at 18:50 UTC but failed to form a new channel, with the spike reversing to the upside instantly, showing buying pressure near $1800. A converging triangle pattern then appeared, breaking out to the downside at 21:10 UTC, corroborated by a death cross in the MACD. This breakout formed a spike, marking the low of the day at 00:50 UTC on March 11. The RSI dropped below the level of 30 again, indicating an overall oversold market condition. A rounding bottom pattern is visible, which, if