Ether (ETH) Shows Signs of Recovery Amid Market Turbulence
Recently, Ether (ETH), the second-largest cryptocurrency by market capitalization, experienced a significant price drop, reaching its lowest value compared to Bitcoin (BTC) since late 2020. This decline was largely attributed to a panic sell-off sparked by escalating trade tensions. However, analysts suggest that a potential rebound may be on the horizon.
According to Joel Kruger, a strategist at LMAX, “ETH appears to be attempting to establish some bullish momentum and may soon recover above the $3,000 mark.” In a report released on Tuesday morning, he noted that “sentiment surrounding the world’s second-largest crypto asset has been improving, with many medium- to long-term investors seizing the opportunity presented by the recent price dip.”
The relative strength index (RSI) for Ether, a critical technical indicator that reflects market momentum, has recently fallen to approximately 35%. Historical data suggests that this oversold condition often precedes rebounds, as highlighted by 10x Research in their latest analysis.
In addition to these technical indicators, the upcoming Pectra upgrade scheduled for March is anticipated to generate a “modest wave of hype” in the weeks leading up to its implementation. Furthermore, the U.S. Consumer Price Index (CPI) inflation report, set to be released on Wednesday, could significantly impact market sentiment. If the figures align with analyst expectations of 2.9% or lower, it could further boost the crypto market and propel ETH prices upward.
Currently, Ether is facing crucial resistance around the $2,650 level. If it can break through this barrier, analysts at 10x Research predict that prices could soar to the next resistance level of approximately $3,000. Over the past month, ETH has seen a decline of around 20% as the broader altcoin market struggled against Bitcoin, which has remained relatively stable in a narrow range near the $100,000 mark. As of now, Ether is trading at $2,644, down 1.5% in the last 24 hours. A successful rally from its current position to $3,000 would represent a substantial gain of 13.5%.
