Ethereum's price fell below $2,100 this week, touching an eight-week low on the Relative Strength Index. The token has since recovered to around $2,150, but the 8% weekly decline has traders watching the charts closely. Data from CoinGecko shows the drop is the sharpest in a month.
Oversold on paper
ETH's RSI dropped to roughly 23 earlier this week — the lowest level since early February. It has since bounced back to about 30. Anything below 30 is typically considered oversold. That doesn't guarantee a rebound, but it does suggest the selling may have been overdone in the short term.
Sell signal from the TD Sequential
Analyst Ali Martinez pointed out that the TD Sequential indicator flashed a sell signal for Ethereum. The timing isn't great. The signal appeared just as the token was trying to stabilize above $2,100. Martinez's call adds to the cautious mood.
More ETH sitting on exchanges
The number of ETH tokens held on exchanges has increased in recent days. More coins on exchanges often means more potential selling pressure. If holders are moving tokens to trade or cash out, that could keep a lid on any recovery. The combination of an oversold RSI and rising exchange supply leaves ETH in a tricky spot.
