Ethereum has suffered one of its steepest falls of the year, crashing below $160 in what has been the worst week for the crypto market in months.
After a brutal five-day drop in which ETH went from $220 to $166 per token, a brief bullish correction sparked the optimism of several scalpers and day traders when the token woke up and reached $175 yesterday.
However, the bulls failed to hold on to their dominance, and the token continued its bearish trend, reaching a low of $151 today, according to data from Trading View.
This is Ethereum's lowest price since May. What’s more, the token had not experienced such a steep drop since mid-June, when it went from $343 to $274 per token.
While market analysis cannot alone give a completely satisfactory answer for this unusual slide, everything seems to indicate that the market is following the bearish trend started by Bitcoin on Tuesday, when it began to fall below $10,000 to eventually break under the $8000 zone today.
The RSI (relative strength index) is showing clear signs of a panic episode. The indicator is touching minimum levels, but we have not seen such a steep drop the entire year.
This means that the market went from an overbought episode (where many people want to buy the token even if it has a very high price) to an oversold stage in very little time, pointing to manipulation, a panic episode, or an extreme reaction to what is happening in the Bitcoin market.