Ethereum (ETH) is facing a sharp correction, dropping 11% over the past week as bearish momentum continues to dominate. The Relative Strength Index (RSI) remains weak, showing a lack of strong buying pressure, while the Directional Movement Index (DMI) confirms that sellers are still in control.

Additionally, the Exponential Moving Averages (EMA) are in a firmly bearish structure, suggesting that ETH could soon test critical support levels at $1,756 and potentially fall below $1,700 for the first time since October 2023.

ETH RSI Shows the Lack Of Buying Pressure

Ethereum Relative Strength Index (RSI) is currently at 34.4, recovering slightly after briefly dipping to 27.4 yesterday. The RSI has remained below the 50 mark for three consecutive days, signaling that bearish momentum is still dominant.

The RSI measures the speed and magnitude of recent price changes to assess whether an asset is overbought or oversold.

Typically, an RSI above 70 indicates overbought conditions, suggesting potential for a pullback, while an RSI below 30 signals oversold conditions, implying that selling pressure may be overextended and a bounce could be imminent.

With ETH’s RSI now at 34.4, it suggests that while the asset is still in bearish territory, the extreme selling pressure seen yesterday has eased slightly.

The brief dip below 30 signaled an oversold condition, which often leads to short-term relief rallies. However, for ETH to regain bullish momentum, the RSI would need to climb back above 50, indicating a shift in market sentiment.

Until then, any upward movement could face resistance, and the broader trend remains weak unless sustained buying pressure pushes ETH out of this bearish zone.

Ethereum DMI Shows The Current Downtrend Is Strong

Ethereum Directional Movement Index (DMI) chart shows that its Average Directional Index (ADX) is currently at 29.82, rising from 21.9 yesterday.

The ADX measures the strength of a trend, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or nonexistent trend. Given the ADX’s sharp increase, it confirms that ETH’s ongoing downtrend is strengthening.

The +DI (positive directional index) has dropped to 15.4 from 23.1 in the past day, while the -DI (negative directional index) has surged to 37.8 from 27.3, reinforcing the dominance of sellers in the market.

With the -DI significantly above the +DI, it signals that bearish momentum is intensifying, and sellers continue to control ETH’s price action.

The decline in +DI suggests that buying pressure is weakening, making it more difficult for ETH to stage a recovery. Unless the +DI begins to rise and crosses above the -DI, ETH’s price is likely to remain under pressure.

Given that the ADX is nearing 30 and still climbing, the downtrend appears well-established, and any short-term relief rallies may face strong resistance before a meaningful trend reversal can occur.

Ethereum Is Still Struggling Below $2,000

Ethereum Exponential Moving Average (EMA) lines are displaying a strongly bearish setup, with short-term EMAs positioned below long-term ones.

This alignment confirms the continuation of downward momentum, with ETH having dropped over 11% in the last 24 hours. If the current trend persists, ETH could test the critical support at $1,756, a level that could determine whether further declines are imminent.

A breakdown below this support would expose Ethereum’s price to a potential drop below $1,700, a level not seen since October 2023, further reinforcing bearish sentiment in the market.

However, if ETH manages to reverse its downtrend, the first key resistance to reclaim would be at $1,996. A successful breakout above this level could trigger a stronger recovery, pushing ETH toward the next resistance at $2,320.

If bullish momentum accelerates, Ethereum could extend gains toward $2,546, a level that would mark a complete shift in trend structure.

For this to happen, ETH would need sustained buying pressure and a bullish EMA crossover, signaling a transition out of its current bearish phase.

XRP continues its decline, falling 10% over the past week as bearish momentum strengthens.

The fourth-largest cryptocurrency by market capitalization remains under pressure, with waning buying interest hinting at the possibility of further losses.

XRP’s Outlook Worsens as Buying Pressure Fades

Since reaching an all-time high of $3.40 on January 16, XRP has remained mostly within a descending parallel channel. This is a bearish pattern formed when an asset’s price moves between two downward-sloping parallel trendlines, indicating a downtrend.

When an asset’s price trades within this channel, it marks a period of decline during which sellers dominate, and buying activity is low. This has put significant downward pressure on XRP’s price in the past month. 

XRP currently trades at $2.11, exchanging hands below its 20-day exponential moving average (EMA). This key moving average measures the asset’s average price over the past 20 trading days, giving more weight to recent prices to reflect short-term trends. 

When an asset’s price falls below its 20-day EMA, it suggests that selling pressure is strong and the asset is in a bearish phase. This signals continued downside momentum for XRP unless buying interest increases to push the token’s price back above the EMA.

Further, XRP’s Chaikin Money Flow (CMF) is currently in a downtrend and is poised to breach its zero line. This indicator, which measures money flow into and out of an asset, is at 0.02 as of this writing. 

When an asset’s CMF attempts to fall below zero, it reflects the weakening buying pressure and increasing selling dominance. This suggests that money is flowing out of XRP rather than into it, reinforcing the bearish outlook. 

XRP Faces Bearish Pressure: Could It Crash to $1.47?

XRP risks dropping below $2 if new demand remains insignificant. In that scenario, it could plummet to $1.47, a low it last reached in November. 

On the other hand, if selling pressure wanes and XRP sees an uptick in buying activity, it could push its price past the resistance at $2.81 toward the $3.40 all-time high.

OKX pushed back against a recent article claiming that EU watchdogs were scrutinizing the exchange over its potential role in the Bybit hack. The firm received a MiCA license last month to meet EU compliance and claims that regulators are not investigating its services.

OKX’s comments took a surprisingly hostile tone towards Bybit, even though the firm proactively tried to cooperate in freezing stolen money. It did not directly refute the notion that Lazarus Group hackers used its decentralized services.

OKX Pushes Back Against Claims of EU Scrutiny

OKX, a leading crypto exchange, has been building its regulatory credibility as of late. Last month, OKX settled with the US Department of Justice to help normalize relations. It also recently secured a MiCA license to conduct business in the European Union.

Today, the exchange reacted to a recent Bloomberg article that claimed EU regulators were quietly scrutinizing it. In the article, Bloomberg referenced Bybit’s statement and described that EU regulators are ‘zeroing in’ on OKX’s Web3 services.

“The Bloomberg article is misleading. It is unfortunate Bybit’s statements are spreading misinformation among journalists. We want to clarify for our community that OKX is not being investigated. This is simply a case of Bybit’s lack of security know-how. Our web3 wallet services are no different than what is offered by other industry players,” OKX wrote on X (formerly Twitter).

A Bybit Misunderstanding?

On March 4, Bybit CEO Ben Zhou posted a breakdown of the Lazarus Group’s money laundering efforts, which were largely successful.

Also, Zhou claimed that 8% of the funds were laundered through a decentralized OXK wallet, and its President, Hong Fang, reached out to help. Zhou thanked her for this assistance.

However, this 8% of the stolen funds, which amounted to around $100 million, is at the center of the EU’s apparent scrutiny. Bloomberg reported that regulators are trying to determine whether OKX’s separate, decentralized Web3 service also falls under MiCA. If so, the EU may even claim that OKX violated sanctions against North Korea.

All that is to say, this report doesn’t cite any new claims from Bybit except the exchange between Zhou and Hong. This interaction had a very cordial tone at the time, but OKX’s official statement is much more caustic today.

The firm absolutely refutes these claims and reiterates that Bybit was hacked because of its own security vulnerabilities.

“We will continue to help Bybit to strengthen the industry. But we absolutely refute the false claims by Bybit that are leading to misinformation about our role in what began as a serious security vulnerability on their exchange,” OKX wrote.

These claims are particularly concerning and don’t necessarily align with OKX’s proactive response after the hack. When the hack first happened, crypto sleuth ZachXBT specifically appreciated the firm’s willingness to help freeze stolen assets.

If this cooperation attracted regulatory scrutiny, however, some frustration is understandable. So far, Bybit hasn’t commented on any of these proceedings.

It’s important to remember that Bloomberg didn’t state that a criminal investigation was taking place, only that a confidential group of watchdogs was closely discussing the issue. It didn’t specifically touch on the actual laundering allegations.