Recent developments in the crypto market have shown that Ethereum is currently in oversold territory. This could potentially be a bullish sign for the second-largest cryptocurrency by market cap. According to crypto analyst Titan of Crypto, Ethereum is poised for a price rally that could push its value as high as $6,000. Historically, Ethereum has seen a rally or a short-term pump whenever the relative strength index (RSI) is in or near oversold territory on the 3-day chart. While the outcome is uncertain, Titan of Crypto believes that an upward movement for Ethereum is on the horizon.
Crypto analyst Crypto Wolf has also shared insights on Ethereum’s current situation, noting that sentiment towards the cryptocurrency is at an all-time low and herd interest in ETH is dwindling. However, his updated chart suggests that Ethereum might be approaching a bottom, indicating a potential bullish reversal in the near future. With a price recovery, Ethereum could reach $2,900 and possibly break through the resistance at $3,900 to aim for $5,600.
Price Recovery and Market Structure
Another analyst, Poseidon, has hinted at an imminent price recovery for Ethereum, stating that manipulation in the market is coming to an end, and expansion is on the horizon. According to Poseidon’s analysis, Ethereum must reclaim the $2,600 mark for a shift in market structure to the upside. If successful, Ethereum could see a surge to $3,200 in the short term. The Spot Ethereum ETFs play a crucial role in any potential price recovery for Ethereum as they have experienced significant net outflows since their launch in July, putting pressure on ETH’s price.
Data from SoSo Value reveals that the Spot Ethereum ETFs have witnessed a cumulative total net outflow of $562.31 million, contributing to the selling pressure on Ethereum’s price. This selling pressure has mainly stemmed from Grayscale’s Ethereum Trust (ETHE), similar to what was observed with Grayscale’s Bitcoin Trust (GBTC) following the launch of Spot Bitcoin ETFs. While these developments create uncertainty in the market, analysts remain optimistic about Ethereum’s potential for a price recovery and growth.