ETH Plunges 19%, Time To Buy the Dip?

As of the latest 4-hour chart analysis, ETHUSDT is exhibiting bearish signals across multiple technical indicators, suggesting potential downward pressure in the near term. The most recent closing prices have been declining, with ETH closing at $2,339.96 after previously closing at $2,312.72, $2,688.92, $2,757.55, and $2,826.98. This downward trajectory indicates that the selling pressure is mounting.

The 9 EMA (Exponential Moving Average) and 20 EMA are both trending downwards, with the 9 EMA currently at 2660.85 and the 20 EMA at $2,839.74. This indicates a strong bearish sentiment, as shorter-term momentum (9 EMA) is below the longer-term trend (20 EMA). Typically, such a crossover suggests that the market may continue to experience bearish momentum.

MACD (Moving Average Convergence Divergence) values are firmly in negative territory, with the MACD line below the signal line. The most recent MACD value is -175.27 with a signal line at -118.55, producing a histogram of -56.72. The widening of the MACD and signal line indicates increasing bearish momentum, with the histogram further confirming the strength of the downward trend.

RSI (Relative Strength Index) values are deeply oversold, with the latest reading at 12.57. Values below 30 typically indicate oversold conditions, suggesting that the asset might be undervalued and due for a potential reversal. However, the RSI being this low also underscores the current bearish pressure.

The Ethereum price is approaching key resistance levels at $3,032.55, $3,066.83, and $3,083.47. Should the price attempt a recovery, these levels will be crucial to monitor. Breaking above these levels would be necessary for any potential bullish reversal, yet the current indicators suggest this is unlikely in the immediate term.

Potential Trading Strategies

Considering the current bearish trend, caution is advised for entering long positions. Potential entry points could be considered if there is a clear reversal signal near oversold conditions on the RSI, combined with a bullish crossover on the MACD. An exit point could be placed just below the resistance levels, specifically around 3032.55 to manage risk effectively.

The prevailing trend favors short positions. Potential entry points could be at or near the resistance levels mentioned ($3,032.55, $3,066.83, $3,083.47), anticipating that the Ethereum price will fail to break through these levels. Exiting these trades could be considered as the Ethereum price approaches key support levels or if a bullish reversal signal is confirmed.