The weekly chart shows that the last two times that ETH’s RSI dipped below 30, the price started to recover and rallied toward previous highs or reached new records a few months after.

In all of these instances, the price plateaued above a certain level and even retested that mark multiple times. We believe that the $1,800 area is potentially that key level to watch during this bearish cycle.

Hence, any dip to that demand zone at this point could be considered a buying opportunity and that’s how the market seems to be acting as the price has bounced multiple times off that level.

If that’s the case, we could expect a rally toward $4,000 over the next few months. The only thing missing right now, is a positive catalyst that pushes ETH out of consolidation.