Ethereum’s 48% Price Plunge: Bearish Market Cap Correlation and RSI Signal Major Sell-Off

• Ethereum’s price has plunged 48.47%, dropping from $4,093.7 to $2,514.8 over 184 days, indicating prolonged bearish pressure.
• Market cap declined by $26.98 billion to $296.18 billion, highlighting strong selling pressure and notable market activity.
• RSI at 40.07 and MACD values show bearish momentum, suggesting continued downward pressure for Ethereum in the near term.

Ethereum (ETH) has faced a sharp price decline, correlating with a substantial drop in its market capitalization. Recent data highlights key points from price movement and market indicators, showcasing a bearish trend.

Price Decline and Trading Volume

The first chart highlights a substantial decline in Ethereum’s price, falling by approximately 1,984.4 points or 48.47% from its peak. This decline spans over 184 days, reflecting a prolonged period of downward pressure. The highest recorded price during this period was around $4,093.7, while the lowest reached approximately $2,109.3. 

Source: @AltcoinDailyio on  X

At press time, Ethereum was trading at $2,457.27. The trading volume during this period was noted as 878.692K, highlighting significant activity in the market. This volume indicates that a high number of Ethereum were traded, contributing to the substantial price correction observed.

Weekly Market Capitalization and Technical Indicators

Currently, Ethereum’s market cap stands at $296.18 billion, marking a decrease of $26.98 billion or 8.35%. The weekly price range shows a high of $324.249 billion and a low of $255.792 billion, with recent data indicating a strong selling pressure.

The RSI is currently at 40.07, indicating bearish momentum. Typically, an RSI below 30 is considered oversold, while above 70 is overbought. A decline from the previous RSI of 54.86 to 40.07 suggests weakening strength. 

Source: TradingView

The MACD line is at -16.89 billion, with the signal line at 4.361 billion and the histogram at -21.251 billion. These values confirm a bearish trend with increasing downward momentum, as the MACD line is below the signal line.

Analysis of Market Conditions

The analysis of these indicators supports the view of a bearish trend for Ethereum. The notable drop in market capitalization, combined with the RSI and MACD indicators, suggests a continuation of the current downward momentum. 

The volume bars at the bottom of the chart further indicate higher selling pressure compared to previous weeks. This comprehensive view of Ethereum’s market conditions points to a cautious outlook for the market.