Ethereum (ETH) just experienced its longest losing weekly streak in history after selling off for 10 consecutive weeks. The previous record losing streak was recorded on November 2016 when Ethereum sold off for 9 straight weeks.
CCI Oversold Reading
The Commodity Channel Index (CCI) has fallen to its most oversold reading in history, which historically has flashed a reversal in the cryptocurrency price. Additionally, the ETH price is hovering near the $1,672 critical support level.
While we have multiple bullish signals, we're not out of the woods just yet. In the short term, the extreme oversold reading might slow down the selling pressure. So, a rally from around this support area has the potential to emerge.
To track the average price from the current 10-week sell-off, we can plot the 10-week moving average to assess a potential target to the upside. Currently, the 10-week moving average stands at $2,179.
ABC Correction
From a technical perspective, the sell-off from the November 2021 all-time high is unfolding as an ABC correction. The "bounce zone" of the ABC pattern usually can be found between the 0.618 and 0.786 Fibonacci extension levels as measured from wave A against the high of wave B.
ETH's price has entered that "bounce zone" between $1,900 and $1,443.
Looking forward
Since we're still in a bear market, the bottoming process can take longer than expected. In the case of an extensive wave C, the ETH price can drop down to the 1 Fibonacci extension level.
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