Ethereum\u2019s price action has been closely mirroring that of Bitcoin\u2019s in recent times, which led ETH to drop as low as $120 this morning before posting a massive surge back up to the $130 region.<\/p>\n
ETH\u2019s strong reaction to the $120 level confirms that this is a strong support region for the cryptocurrency and may even signal that these lows will mark a long-term bottom for Ethereum \u2013 a possibility that appears to be confirmed by history.<\/p>\n
At the time of writing, Ethereum<\/a> is trading up over 4% at its current price of $130, which marks a massive climb from its daily lows of $120 that were set earlier this morning concurrently with the capitulatory drop incurred by Bitcoin and most other major altcoins.<\/p>\n This morning\u2019s rapid downturn marked a significant extension of the downwards momentum that the markets had been facing over the past few days, which was sparked by Bitcoin\u2019s drop below its key support level at $7,000 earlier this week.<\/p>\n One factor that should be closely considered in the near-term is the fact that Ethereum\u2019s bounce from its 24-hour lows came about concurrently with incredibly low RSI levels, with levels this low historically marking long-term bottoms for the crypto.<\/p>\n Josh Olszewicz, a popular cryptocurrency analyst on Twitter, spoke about this possibility in a recent tweet, saying<\/a>:<\/p>\n \u201cDaily $ETH RSI = 21 – has only ever been this low five other times, two of which were local bottoms, the others leading to a bullish divergence.\u201d<\/p><\/blockquote>\n In addition to boasting technical strength while looking at ETH\u2019s technical indicators, its weekly chart may also signal that it will soon see significantly further upside in the near-term.<\/p>\n