Ethereum Crashes to $1,589, Hits Oversold Levels on June 05

Ethereum fell to $1,589 USD on June 05, a 13% decline over the past month, as the broader crypto market faces liquidations and ETF outflows. The asset now trades below its 50-day moving average and shows extreme oversold signals. Meyka rates ETHUSD a C+ with a 12-month target of $2,894, suggesting limited near-term upside without a recovery above $1,825.

Price Collapse Accelerates Below Key Levels

Ethereum dropped to $1,589 USD on June 05, marking a 13% monthly decline and a 24.7% fall over three months. The asset traded between a daily low of $1,547 and high of $1,781, closing near the lower end of the range. Ethereum fell 3.18% in the Asian session as broader crypto liquidations exceeded $1.2 billion in a single day.

Technical Indicators Flash Extreme Oversold Signals

Ethereum’s Relative Strength Index (RSI) dropped to 21.10, indicating extreme oversold conditions rarely seen outside major market crashes. The Stochastic indicator fell to 7.37, while the Williams %R reached -90.14, all confirming heavy selling pressure. Price action remains below the 100-hourly simple moving average at $1,780, with the asset consolidating below $1,750.

Support Zones Define Next Price Target

Critical support sits at $1,600 and $1,500 USD. A breakdown below $1,600 could expose further downside toward $1,500. Resistance levels stand at $1,750, $1,800, and $1,820. Analysts note that Ethereum must reclaim $1,825 and $1,975 to signal a trend reversal. ETF spot inflows resumed after a 17-day outflow streak, offering modest relief.

Meyka Forecast Points to Recovery Potential

Meyka’s 12-month price target for Ethereum is $2,894 USD, 82% above the current price. The platform rates the asset a C+ on a scale where higher grades indicate stronger fundamentals. With the RSI at 21 and price near key support, the data suggests limited downside if $1,600 holds, but recovery requires breaking above $1,825 resistance.

Final Thoughts

Ethereum trades at extreme oversold levels with support at $1,600 critical to prevent further declines. Meyka’s $2,894 target suggests significant upside if the asset stabilizes, but near-term recovery depends on reclaiming $1,825 resistance.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.