Ethereum (ETH) continues to fall against Bitcoin, leading analysts to expect further declines in the coming weeks.
The ETH/BTC parity fell to $0.022 on March 13. This level is the lowest since May 2020, while the RSI also fell to a record low of 23.32.
Typically when the RSI drops below 30 it signals an oversold condition and potentially a price recovery.
However, as the Ethereum price continues to fall further for two months even after the RSI entered the oversold territory, analysts say that the data shows that ETH is still in a downtrend.
As Ethereum falls to multi-year lows, analysts predict that ETH could face the risk of further declines in the face of competition.
At this point, crypto analyst Alessandro Ottaviani warned that buying ETH in the current situation is like catching a “falling knife” and that further declines could still occur.
“ETH/BTC also broke the 0.023 support level.
Ethereum is a falling knife and the downtrend is accelerating.”
The term Falling Knife is often used to describe an asset that is experiencing a rapid and steep decline, which discourages buyers from jumping in too early. This term means that trying to buy the asset at lower levels could result in further losses if the downtrend continues.
*This is not investment advice.
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