Crypto Crash: Ethereum and Cardano Reverse Early Gains – Is ETH Falling to $1,000?

Although the sell-off looks awful on the lower time frames, trading volumes are still not as high as they were yesterday during the recovery.

This may indicate that the news may not have the necessary strength (for now) to push these assets below their recent lows.

However, market sentiment remains heavily depressed as the Fear and Greed Index currently stands at 19, meaning that investors are in Extreme Fear.

Crypto liquidations in the past 4 hours have now surged to $136 million, of which $122 million correspond to long positions being flushed out as a result of this unexpected drop. In total, $46 million worth of Ethereum longs have been put out in the past 24 hours.

Negative Momentum Reaches Extreme Levels

We have been tracking this daily chart for a few days now, as Ethereum’s Relative Strength Index (RSI) in this time frame has entered oversold levels.

The past three times that Ethereum has seen its RSI step out of these technical extremes, it has rallied to the $4,000 area.