ETH Struggles Below Key Resistance Despite Bybit Recovery

Ethereum (ETH) has been grappling with significant bearish pressure, declining by over 18% in the past 30 days amidst heightened market uncertainty. The Relative Strength Index (RSI) has plummeted, indicating a substantial shift in market sentiment and suggesting increased selling pressure. Despite a recovery of 84% of Bybit's reserves following a hack, ETH continues to struggle below key resistance levels, highlighting ongoing market trepidation.

Bybit's ETH reserves, which had plummeted from 443,000 ETH to just 20,250 ETH in a single day due to a major hack, have since recovered to approximately 372,000 ETH, representing about 84% of the assets lost during the incident. This recovery signals a potential return of buying interest in ETH, but the price remains under pressure, reflecting a market still reeling from previous fears.

The Relative Strength Index (RSI) for Ethereum recently dropped significantly from 63.2 to 43, indicating a troubling shift in buying momentum. This metric, which assesses the speed and change of price movements, reveals a market perception that has turned bearish, as the RSI now ventures closer to oversold territory. An RSI reading above 70 typically hints at asset overbought conditions, while below 30 reflects oversold conditions, presenting potential buying opportunities. The current value of 43 reflects a significant weakening of buying interest, likely a consequence of lingering concerns about the hack's implications on market stability.

Further analysis reveals that Ethereum's Average Directional Index (ADX) has dropped from 21.4 to 18.3, indicating a waning trend strength. With the +DI (positive directional indicator) declining and the -DI (negative directional indicator) rising, the market sentiment leans heavily towards further downside pressure. The crossover between -DI rising above +DI confirms the prevailing bearish trend, pointing to an environment ripe for continued downward price movements unless a resurgence in buying momentum occurs.

Ethereum's price has been below $2,900 for three weeks, highlighting ongoing resistance in the market. Testing the $2,850 resistance repeatedly in the past few weeks, ETH's inability to mount a sustained rally indicates strong selling pressures remain present. Should the