ETHPLN +22.36% as Short-Term Rally Ignites Amidst Broader Decline

On SEP 8 2025, ETHPLN rose by 22.36% within 24 hours to reach $15749, ETHPLN dropped by 320.29% within 7 days, dropped by 235.32% within 1 month, and rose by 1353.6% within 1 year.

The surge in ETHPLN marks a significant rebound on the daily time frame, though it remains within a broader downtrend observed across multiple horizons. The 24-hour gain suggests a possible short-term reversal driven by renewed buying interest. Analysts project that this upward movement could be attributed to a combination of algorithmic trading activity and a consolidation of bearish momentum after weeks of sustained decline.

The price behavior of ETHPLN has displayed a volatile profile, with the 7-day and 1-month declines indicating a structural shift in market sentiment. Despite this, the sharp rise on September 8 may reflect traders reacting to overbought conditions in the short term. Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have shown divergences, suggesting potential exhaustion in the bearish trend.

On the monthly chart, the 1353.6% gain over one year highlights the long-term resilience of the asset despite recent challenges. This disparity between short and long-term performance is not uncommon in high-volatility assets like ETHPLN. However, the recent pullback appears to have triggered stop-loss orders and sparked renewed interest in risk-on positions among speculative traders.

Traders have noted that the recent upswing may be a reaction to a breakdown in the prevailing bearish trend. With the RSI approaching oversold levels and the MACD line crossing above the signal line, some market participants are interpreting this as a sign of a potential reversal. Nevertheless, confirmation of a long-term trend shift remains pending.

Backtest Hypothesis

To evaluate the potential for a sustained recovery, a backtesting strategy has been developed using historical ETHPLN data. The hypothesis under test is whether a combination of RSI and MACD crossover signals could have been used to identify high-probability entry points during the asset’s recent correction. The strategy assumes a long position is initiated when RSI falls below 30 (indicating oversold conditions) and the MACD line crosses above the signal line. A stop-loss is placed at the 20-day low, and a take-profit target is set at the next resistance level.

The test aims to determine if the model could have captured the recent 22.36% move and whether it would have filtered out false signals during the 7-day and 1-month downturns. By isolating trades based on these criteria, the backtest provides a framework to assess the viability of using these indicators for tactical entries in volatile environments.