The weekly chart of Ethereum (ETH) in terms of Bitcoin (BTC) shows a prolonged downward trend, but there are technical signals that could indicate a possible upward rebound. Here is the simplified analysis:
📍 1. Overall Trend and Technical Support
- Downward trend 📉: The price of ETH is below the 50 and 200-week exponential moving averages (red and blue lines), reinforcing the bearish market trend. However, the current price (around 0.016 BTC) is close to a historic support level (red dashed line), where it has bounced back on previous occasions. If this support holds, it could trigger a temporary upward movement.
📍 2. Key Technical Indicators
- RSI (Relative Strength Index): The RSI is at 24.93, "overbought" zone (below 30), suggesting that ETH could be undervalued in the short term. This increases the chances of a technical rebound, although it does not guarantee a trend change.
- Volume: The current volume (102.01K ETH) is moderate. A significant rebound would require a sustained increase in volume to validate buyer entry.
📍 3. Price Patterns
- Lateral consolidation: Since mid-2023, ETH has fluctuated in a narrow range between 0.016 and 0.021 BTC. This pattern could be an accumulation phase before a sharp move. If the price breaks upwards from this range, it could initiate a rebound.
- Downward trend line 📉: The descending line connecting recent highs acts as resistance. A weekly close above this line (approximately 0.021 BTC) would be an important bullish signal.
📍 4. Long-term Outlook
- Market structure: Although the main trend remains bearish, ETH has shown resilience at critical support levels. Fundamental factors (such as technical improvements in Ethereum or institutional demand) could drive a rally if combined with positive technical signals.
- Relation to Bitcoin: As the chart is in terms of BTC, a weakening of Bitcoin relative to ETH could also benefit its price. However, if Bitcoin falls, ETH might follow its trend.
### Conclusion
Yes, ETH has the potential for a technical rebound if:
- Maintains the current support (~0.016 BTC).
- The RSI rises above 30, indicating recovery.
- Volume increases during upward movements.
- Breaks the downward trend line and exceeds 0.021 BTC.
However, the downward trend will persist unless these factors are confirmed. Investors should closely monitor these levels and avoid long positions without clear reversal signals.
