Ether Set to Bounce Back to $3,000: Analysts Point to Key Catalysts
Ether (ETH), the second-largest cryptocurrency by market capitalization, recently hit its lowest price against Bitcoin (BTC) since late 2020 following a panic-driven crash sparked by the trade war. However, analysts are anticipating a potential relief rally for Ether as it shows signs of a recovery.
“ETH appears to be attempting to establish bullish momentum and could be on track for a rebound above $3,000,” said LMAX strategist Joel Kruger in a Tuesday report. “Sentiment surrounding Ether has improved, with many medium and long-term investors stepping in to capitalize on the recent dip,” Kruger added.
Ether’s relative strength index (RSI), a critical technical indicator used to gauge momentum, recently dropped near 35%, which has historically been a precursor for price recoveries after hitting similar oversold levels, according to 10x Research.
Another potential catalyst for a rally is the upcoming Pectra upgrade, scheduled for March. Analysts suggest that this upgrade could generate a “modest wave of hype” in the coming weeks, which may provide additional momentum for Ether’s price.
Additionally, the release of the U.S. Consumer Price Index (CPI) inflation report on Wednesday could impact market sentiment. If the report meets or falls below analysts’ forecast of a 2.9% inflation rate, it could boost confidence in the crypto market and support Ether’s price surge.
Currently, Ether is facing resistance around the $2,650 mark, and a breakout could push prices toward the next resistance level near $3,000, according to 10x Research analysts.
Ether has lost 20% of its value over the past month as the broader altcoin market lagged behind Bitcoin, which has been consolidating within a narrow range around the $100,000 level. As of now, Ether is trading around $2,644, and a recovery to $3,000 would represent a 13.5% gain.
