Ether Poised for a Rebound to $3K From Oversold Levels: Analysts
Recovery from oversold momentum indicator, the upcoming Pectra upgrade and Wednesday's CPI report are among the catalysts that could fuel an ETH rally,, a 10x Research report noted.
Ether (ETH), the second largest cryptocurrency by market capitalization, recently sunk to its weakest price compared to bitcoin (BTC) since late 2020 in a trade war-fueled panic crash, but a relief bounce might be on the horizon.
"ETH looks to be trying to establish some bullish momentum and could be looking to finally make a recovery back above $3,000," LMAX strategist Joel Kruger said in a Tuesday morning report. "Sentiment towards the world’s second largest crypto asset has been back on the rise with many medium and longer-term players stepping in to take advantage of the recent dip," he added.
"ETH looks to be trying to establish some bullish momentum and could be looking to finally make a recovery back above $3,000," LMAX strategist Joel Kruger said in a Tuesday morning report. "Sentiment towards the world’s second largest crypto asset has been back on the rise with many medium and longer-term players stepping in to take advantage of the recent dip," he added.
Ether's relative strength index (RSI), a key technical indicator representing momentum, dropped to near 35%, which foreshadowed a rebound in several previous occasions from similar oversold levels, crypto analytics firm 10x Research noted in a report.
The upcoming Pectra upgrade, scheduled for March, could also provide a "modest wave of hype" in the next few weeks, the report added. Wednesday’s U.S. CPI inflation report, if it arrives in line with analyst forecasts of 2.9% or lower, could also boost crypto market sentiment and fuel ETH higher, the report said.
Ether is currently battling with key resistance at around $2,650, and a breakout could see prices climbing to the next resistance level of around $3,000, 10x Research analysts said.
Read more: Ether Has Underperformed, but Total Value Locked on Ethereum Is Rising: Citi
ETH shed 20% of its value over the past month as the border altcoin market bled against bitcoin, which consolidated sideways in a narrow range around the $100,000 level. The second largest crypto was recently down 1.5% over the past 24 hours at $2,644, and a rebound from current levels to $3,000 would translate to a 13.5% gain.
