ETH About to Collapse? Increasingly Strong Technical and On-Chain Signals

Ethereum is in turmoil, and the shadow of the previous bearish cycle has reappeared. In the past three months, ETH has lost over 65% of its value, bringing speculators and investors to a significant psychological threshold: $1,000. This decline is not just a simple correction, but also a reverberation of the bearish trends of 2018 and 2022. As indicators slip into a zone of panic, the prospect of a solid floor will spur both hopes for recovery and fears of prolonged capitulation. Market Share and Technical Signals: The Return to the Abyss? Over the past three months, the price of Ether has fallen by more than 65%, raising the theory of a return to record lows of around $1,000. This decline occurred after reaching a peak in December 2024 at $4,095, marked by a bearish divergence of the Relative Strength Index (RSI). This setup, where the RSI begins to fall while the price continues to rise, is often seen as a precursor to trend reversal. The fractions in the past show that a correction of over 60% is often followed by a long-term recovery. ETH's weekly RSI currently remains above the oversold level of 30, indicating that the bearish trend may continue. This technical signal is even more significant as it resonates with the previous cycles observed in 2018 and 2022. At this stage, several technical factors need to be closely monitored: The $1,000 zone is a potential threshold, identified in previous market cycles; The RSI maintaining above 30 indicates there is still a possibility of further fall before a potential recovery; The fractal memory of the market provides information on the periodic price structure on Ethereum during the adjustment period; The absence of a clear consolidation phase suggests that volatility remains high in the short term.

The Surrender of Investors: A Bottom Signal for Future Recovery? In addition to graphical data, on-chain indicators confirm a widespread bearish atmosphere. One of them, NUPL (Net unrealized profit/loss), indicates that ETH has entered a zone referred to as "capitulation". This indicator measures the portion of unrealized profits or losses in the market. When it falls into this zone, it means that the majority of Ethereum wallets are showing unrealized losses. This historical context coincides with the times when the market hit the bottom, as seen in December 2018 and June 2022. This indicates that investors are panic selling out of fear, often at prices lower than their purchase price. The shift of NUPL towards extreme levels indicates increasing psychological pressure among holders of long positions. These holders, generally more resilient, are beginning to surrender, a phenomenon rarely observed outside of market bottoms. The potential impact of this situation could be twofold. On one hand, it signals an exhausted market where sellers may have acted. On the other hand, it raises questions about the momentum needed for a sustainable recovery: macroeconomic catalysts, technological updates, or a reversal of general sentiment. If the $1,000 threshold is reached, or even breached, it could represent a significant turning point. It is not a signal of Ethereum's doomsday, but rather a reset phase. Historically, zones of capitulation have preceded the strongest recoveries, provided that the fundamentals follow suit. The question remains whether the market is ready to embark on a new bullish cycle or is about to explore further depths of speculative despair. ⚠️IMPORTANT! If you like this topic, don't forget: • Follow me @blogtienso for more interesting content! • Like, reshare and leave comments 💖and don't forget DYOR! #Write2Earn #Write&Earn $ETH {spot}(ETHUSDT)