The Relative Strength Index (RSI) recently generated a signal that has only occurred once before in the history of the ETH/BTC pair.
Ethereum’s price has reached a critical 1,600-day support level.
The technical chart for ETH/BTC reveals that since September 2022, ETH has been trading below a descending resistance line (represented by a dotted line). In December 2023, the price dropped to a low of ₿0.049.
This low confirmed the long-term ascending support trendline (marked by green icons) for the fourth time. This trendline has been in place for nearly 1,600 days, while the resistance line has existed for approximately 500 days.
Source: TradingView
The weekly RSI momentum indicator has formed a bullish divergence, moving beyond the oversold zone.
This occurrence has only been observed once before, from June to December 2019, and it was followed by a 400% price increase.
Expert opinions
On Platform X, cryptocurrency traders and analysts have a positive outlook on ETH. Bob Loukas believes that the ETH/BTC pair is likely to reach its bottom by the end of January, with no retesting of this level expected for at least 2 years.
Dentoshi shared a chart indicating that ETH’s price is approaching a critical support level, and the upcoming Dencun update is anticipated to aid in reversing the trend.
Ethereum/BTC weekly chart. Source: X
Additionally, CryptoMichNL suggests that the Bitcoin Dominance Index (BTCD) is approaching its peak. Since Ethereum is the largest altcoin and has a significant impact on BTCD, this is inherently bullish for the ETH/BTC pair.
ETH Forecast: Is the Bottom Near?
On the 2-day chart, bullish signs are present despite the ongoing downtrend. Firstly, ETH has been within a descending parallel channel since September 2022. Typically, such patterns contain corrective movements within them. Currently, ETH is trading near the support line of this channel.
Secondly, the RSI has formed a notable bullish divergence in conjunction with the local and absolute bottom. The support line of the channel is currently at ₿0.048, slightly below the June 2022 low (represented by red) at ₿0.049.
Consequently, ETH could briefly dip below this level, touch the ascending support trendline, and then initiate a rise towards the channel resistance at ₿0.060. This would signify an approximate 20% increase from the current price.
Source: TradingView
Conversely, a bearish breakout from the channel could result in a 30% decline towards the next closest support level at ₿0.037.
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