Ether (ETH), the second largest cryptocurrency by market capitalization, has recently plunged to its weakest price compared to Bitcoin (BTC) since late 2020, primarily due to a market panic fueled by trade wars. However, market analysts suggest that a relief bounce could be on the horizon.
According to LMAX strategist Joel Kruger, “ETH looks to be trying to establish some bullish momentum and could be looking to finally make a recovery back above $3,000.” He noted that sentiment towards the world’s second largest crypto asset has been on the rise, with medium and long-term players stepping in to capitalize on the recent dip.
One technical indicator that is signaling potential recovery is Ether’s relative strength index (RSI), which recently dropped near 35%. This level typically indicates oversold conditions and has preceded rebounds in past instances, as highlighted by crypto analytics firm 10x Research.
The forthcoming Pectra upgrade, set to launch in March, is anticipated to generate a “modest wave of hype” leading up to the event. Additionally, the much-anticipated U.S. CPI inflation report, expected to align with analyst forecasts of 2.9% or lower, could further enhance market sentiment and drive ETH prices higher.
Currently, Ether is facing a critical resistance level at approximately $2,650. Analysts at 10x Research indicate that a breakout above this threshold could pave the way for a surge towards the next resistance level of around $3,000.
Despite shedding 20% of its value over the past month as the broader altcoin market struggles, ETH remains an asset to watch. The cryptocurrency has recently experienced a slight decline of 1.5% over the past 24 hours, currently trading at $2,644. A rebound from these levels to $3,000 would represent a noteworthy 13.5% gain.
