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Ethereum News Today: Ethereum's Recent Overselling: Is a Recovery Imminent or Will the Decline Continue?

Ethereum News Today: Ethereum's Recent Overselling: Is a Recovery Imminent or Will the Decline Continue?

Bitget-RWA2025/11/23 17:36
By:Bitget-RWA

- Ethereum faces mounting bearish pressure amid crypto market selloff, with technical indicators and extreme fear metrics signaling a stretched downtrend. - Market capitalization dropped 8% in 24 hours, Bitcoin dominance rose to 56%, while ETH trades below key EMAs with an oversold RSI of 27. - Binance confirms "Strong Sell" signals for ETH/USD, with 12 bearish moving averages and a 14-day RSI of 30.48 reinforcing the negative bias. - DeFi liquidity crisis ($12B idle assets) and a Fear & Greed Index at 14

Ethereum’s Dollar Value Outlook Worsens as Crypto Market Volatility Intensifies

Ethereum (ETH) is under increasing downward pressure as the wider cryptocurrency market experiences a significant selloff. Both technical signals and sentiment indicators suggest a persistent, unresolved decline. Market participants are monitoring whether the current oversold status and heightened fear could spark a brief recovery or indicate further selling ahead.

The cryptocurrency sector has shed about 8% of its total value within a single day,

, highlighting a move toward perceived safer assets. On the daily timeframe, is trading beneath major exponential moving averages (EMAs), and its relative strength index (RSI) stands at 27, signaling a pronounced oversold condition. Despite this, , remains in negative territory, although the pace of decline is slowing. Price volatility is high, with ETH hovering near the lower Bollinger Band, which may point to a stabilization period rather than an immediate trend reversal.
Ethereum News Today: Ethereum's Recent Overselling: Is a Recovery Imminent or Will the Decline Continue? image 0

Analysis from Binance

for ETH/USD, with 12 negative signals across moving averages (from MA5 to MA200) and a 14-day RSI at 30.48, further supporting the bearish outlook. Shorter-term charts reflect this sentiment, and displaying signs of temporary exhaustion, though downward momentum is beginning to ease.

Looking at the broader landscape,

. A liquidity crunch in DeFi, with $12 billion in assets sitting idle, is intensifying the risk-off mood across the market. This inefficiency, (the Fear & Greed Index at 14), suggests that forced liquidations may be nearing their end, but the threat of additional losses remains. For ETH, this means the downward trend persists, though it is becoming increasingly extended, and a sharp relief rally could occur if short covering accelerates.

Key price points will determine the short-term path.

serves as the first resistance, while could open the door to a deeper pullback. On the other hand, if ETH repeatedly holds above this support, it may prompt a short-covering rally toward the middle of the Bollinger Bands. Traders also need to , as shown by a 229 average true range (ATR), which increases the risk of slippage and calls for tighter stop-loss measures.

Given these conditions, investors should proceed with caution. Although the prevailing trend suggests continued weakness unless ETH can reclaim important EMAs, the oversold RSI and extreme sentiment raise the odds of a sudden, sentiment-driven bounce. For active traders, strict risk controls are essential due to the unpredictable nature of recoveries in such a heavily bearish environment.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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