International Journal of Information Technology and Business
Vol. 8 No. 2 (2026): April : International Journal of Information Techonology and Business

Resilience of Deep Q-Network (DQN) Agent in Mitigating Ethereum Trading Risks Under Bearish Market Conditions

Fajri Adha (Universitas Nusa Cendana)
Tiwuk Widiastuti (Universitas Nusa Cendana)
Bertha Selvian Djahi (Universitas Nusa Cendana)



Article Info

Publish Date
15 Jun 2026

Abstract

The high volatility of cryptocurrency assets, particularly Ethereum, poses a significant challenge for investors during market downturns. Traditional passive strategies often lead to substantial capital erosion in bearish conditions. This study explores the application of Deep Reinforcement Learning (DRL) through the Deep Q-Network (DQN) algorithm to develop an adaptive trading agent. By integrating technical indicators—Relative Strength Index (RSI), Simple Moving Average (SMA), and Moving Average Convergence Divergence (MACD)—the proposed model aims to optimize decision-making processes. Experimental results using historical data from 2020 to 2026 demonstrate that while the market experienced a significant decline of 19.55%, the DQN agent successfully maintained capital stability with a marginal deviation of only -0.54%. This finding suggests that the DQN-based approach offers superior risk mitigation and capital preservation capabilities compared to conventional buy-and-hold strategies in volatile financial environments.

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Journal Info

Abbrev

ijiteb

Publisher

Subject

Computer Science & IT

Description

Information Technology Management Information System E-commerce Computational Intelligence Information Infrastructure Cyberspace Enterprise Resource Model Business Intelligence Diffusion and Future IT Network Management IoT ...