Ethereum Rare RSI Signal Suggests Potential Surge To $8,000 – Details

[Redator]

Last week, Ethereum (ETH) prices fell below $4,000 amidst a general crypto market onslaught marked by heavy liquidations. However, the prominent altcoin soon made a quick bounce off the $3,800 price region and has since slipped into consolidation. Notably, popular crypto analyst Lark Davis is tipping Ethereum to make a euphoric market rebound with a potential all-time high on the cards.

Ethereum RSI Flashes Bullish Signal After Fall Into Deep Oversold Zone

The Relative Strength Index (RSI) is a technical analysis indicator that measures the speed and magnitude of price movements. It is generally used to identify when an asset is overbought, i.e., an overheated market, or oversold, i.e., potentially undervalued and could attract heavy accumulation activity. According to Lark Davis, Ethereum’s price has crashed by over 20% in the past two weeks. Notably, this price loss has pushed the asset’s RSI into its most oversold zone since April lows. When this previously occurred, Ethereum popularly surged by 134% in the following two months.

The altcoin now finds itself in a similar situation, with its RSI touching around 39.95. With expectations that the crypto market will turn bullish in Q4, Davis explains that this rare RSI signal could trigger a parabolic Ethereum price surge. In a separate post, fellow market expert Michaël van de Poppe shared some insights into this market behavior, highlighting that September has been a historically bad month for Ethereum, alongside the general market. However, market data also shows that Q4 and Q1 are traditionally bullish.

If Ethereum maintains this behaviour, Lark Davis is postulating the altcoin will experience a possible rally to $7,000-$8,000, indicating a potential 100% price gain from current market levels.

Ethereum Price Overview

At the time of writing, Ethereum is trading at $4,006, reflecting price losses of 0.32% and 10.7% in the past one and seven days, respectively. Meanwhile, the asset’s trading volume has crashed by 57.49% and is now valued at $21.66 billion. Looking to the next month, Ethereum is likely to maintain its current rebound as Q4 begins.

Interestingly, the altcoin has recorded an average monthly return of 6.94% and a median monthly return of 1.94% in October, indicating strong potential for market growth. However, Lark Davis has identified an important support level around the $3,800-$3,900. The analyst warns that Ethereum bulls must maintain this price floor to preserve their current bullish structure.

Meanwhile, with a market cap of $483.26 billion, Ethereum continues to rank as the second-largest cryptocurrency.