Ethereum's recent price movement has been marked by an early rejection of $1,800, raising concerns about a potential 18% drop in value. This move is seen as bearish, but analysts believe that Ethereum could be near the bottom of its cycle based on historical patterns.
The market's sentiment remains depressed due to worsening macroeconomic conditions, with inflation more than doubling the central bank's target and triggering a strong drop across the crypto market. The recent comments from the new head of the Federal Reserve hinted at an upcoming interest rate hike, further exacerbating the situation.
The Relative Strength Index (RSI) is currently sitting at 40, indicating that Ethereum is still coming out of oversold territory. However, if it fails to break past $1,800 this week, analysts expect a decline to $1,400 over the next few days.