Ether (ETH), the second largest cryptocurrency by market capitalization, recently experienced a drop in price compared to bitcoin (BTC) not seen since late 2020 due to concerns over a trade war. However, there may be a potential rebound on the horizon.
According to LMAX strategist Joel Kruger, ETH appears to be gaining bullish momentum and could potentially recover above $3,000. This sentiment is shared by many medium and long-term investors who have taken advantage of the recent dip in prices.
The relative strength index (RSI), a key technical indicator for measuring momentum, has dropped to around 35%, a level that has historically signaled a rebound in ETH’s price, according to crypto analytics firm 10x Research.
In addition, the upcoming Pectra upgrade scheduled for March could generate some excitement in the market in the coming weeks. Furthermore, if Wednesday’s U.S. CPI inflation report meets analyst expectations of 2.9% or lower, it could boost overall market sentiment and potentially drive ETH’s price higher.
Currently, ETH is facing resistance at around $2,650, but a breakout could lead to a climb towards the next resistance level at $3,000, according to 10x Research analysts.
Over the past month, ETH has seen a 20% drop in value as the broader altcoin market struggled against bitcoin, which has been consolidating around the $100,000 level. As of now, ETH is down 1.5% over the past 24 hours, trading at $2,644. A rebound from current levels to $3,000 would represent a 13.5% increase in price.
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