Ethereum Finds Bottom At Three-One-Six-Five After Dramatic Capitulation

Ethereum has completed a textbook capitulation event, bottoming precisely where our October twenty-seventh analysis predicted. After weeks of mounting selling pressure and extreme technical deterioration across multiple timeframes, the cryptocurrency finally found its floor at three thousand one hundred sixty-five dollars, merely thirty-five dollars below the projected three thousand two hundred dollar support level. This remarkable accuracy validates the longer-term framework we established weeks ago, demonstrating that structural analysis often trumps short-term technical noise.

Yesterday’s trading presented a stark lesson in market psychology and timing. While immediate indicators screamed oversold and suggested imminent recovery, price action taught patience as it ground another five percent lower before finding genuine buyers. The twelve-hour session captured the full drama, ranging from three thousand one hundred sixty-five at the low to three thousand three hundred fifty-four at the high, with massive volume confirming widespread capitulation. Retail investors panic-sold into institutional hands exactly as our money flow analysis suggested would occur.

Today’s landscape reveals a dramatically different technical picture. The two-hour Stochastic RSI has exploded from absolute zero to ninety-three, marking one of the most violent reversal signals observed in recent memory. The MACD histogram turned positive for the first time in days, while the RSI finally crossed above its moving average. These aren’t subtle hints—they’re screaming that the selling exhaustion reached terminal velocity. The six-hour timeframe shows RSI at twenty-four point one four, the lowest reading across all periods analyzed, underscoring the extraordinary oversold extreme from which recovery now emerges.

Critical to our bullish thesis remains the weekly timeframe health. Despite the carnage witnessed on shorter intervals, the weekly Chaikin Money Flow maintains a robust positive reading of zero point two eight. This divergence between short-term panic and long-term institutional accumulation creates the foundation for sustainable recovery. Price sits comfortably above the ninety-period weekly moving average at three thousand forty-eight dollars, confirming this correction represents a buying opportunity within an intact bullish structure rather than a trend reversal.

Looking forward, we anticipate price recovery toward the three thousand five hundred dollar zone over coming days, with potential extension to three thousand six hundred fifty dollars if momentum sustains. The risk-reward setup favors long positioning from current levels, with tight stops below the established three thousand one hundred sixty-five floor offering protection against the unlikely scenario of renewed breakdown.

#Ethereum #CryptoCapitulation #TechnicalAnalysis #BottomFormation #InstitutionalAccumulation #CryptoRecovery