Aave and Ethereum Crash — But Charts Hint at Imminent Rebound

Getting your Trinity Audio player ready...

• AAVE and ETH are deeply oversold despite recent losses.
  
• Short-term forecasts suggest 10–19% upside potential.
  
• Long-term trends remain fragile and uncertain.

The broader crypto market is struggling, and two of its most closely watched assets — Aave (AAVE) and Ethereum (ETH) — are firmly in the spotlight. Both tokens have posted sharp daily losses, underperformed Bitcoin, and remain locked in longer-term downtrends. Yet beneath the surface, technical indicators and short-term forecasts suggest a possible relief rally could be approaching.

For traders navigating turbulent conditions, the next few days may prove decisive.

Aave Price Slips, But Short-Term Forecast Turns Upward

AAVE is currently trading around $123.65, down roughly 4.45% in the past 24 hours and lagging the broader market’s decline. Against Bitcoin, AAVE has also weakened, reinforcing near-term bearish momentum.

Despite this softness, short-term projections point higher. Forecast models suggest AAVE could climb to $149.26 within five days, implying a potential 19% upside. That scenario aligns with a familiar crypto pattern: sharp pullbacks followed by short-lived rebounds.

Recent performance remains troubling. AAVE has fallen nearly 25% over the past month, more than 38% over three months, and about 59% year-over-year. Still, the token has logged 13 positive days in the last month and continues trading above both its 50-day and 200-day moving averages, signaling that longer-term structure has not fully collapsed.

Aave Technical Levels and Market Sentiment

Market sentiment around AAVE remains largely bearish, with roughly 73% of indicators pointing lower. The Fear & Greed Index reading of 14 (Extreme Fear) reflects deep caution across crypto markets.

Key levels to watch:

• Support: $119, $109, $100
• Resistance: $138, $148, $157

The RSI near 30 places AAVE close to oversold territory, a zone that often precedes short-term bounces.

Ethereum Faces Heavy Selling, But Oversold Signals Appear

Ethereum is trading near $2,376, after sliding almost 10% in 24 hours. The asset has lost more than 21% in 30 days and roughly 27% year-over-year.

Short-term forecasts indicate ETH could rebound toward $2,685, representing about 10% upside over the next five days. Similar to AAVE, ETH’s RSI around 26 signals oversold conditions.

Also Read: Aave Sets $2M Requirement for New Chains — Here’s What Changes Next

Importantly, ETH remains above its 50-day and 200-day moving averages, suggesting structural support despite aggressive selling.

Critical levels:

• Support: $2,274, $2,104, $1,886
• Resistance: $2,662, $2,880, $3,050

Aave and Ethereum are both caught between bearish momentum and emerging rebound signals. While medium- and long-term trends remain under pressure, oversold conditions and supportive technical structures hint at possible short-term relief rallies.

Whether these moves become sustainable recoveries or brief dead-cat bounces will depend on broader market sentiment — and how traders respond to extreme fear conditions in the days ahead.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.