Oversold Ether Set for a Potential Rebound to $3K, Analysts Believe.

Ether Set for Possible Rebound Toward $3,000, Analysts Point to Key Catalysts

Ether (ETH), the second-largest cryptocurrency by market capitalization, has recently faced significant downward pressure, falling to levels not seen since late 2020 against Bitcoin (BTC). However, experts are now pointing to a potential recovery, with Ether possibly making its way back to the $3,000 mark.

“ETH seems to be gathering momentum and could soon recover above the $3,000 threshold,” stated Joel Kruger, strategist at LMAX, in a Tuesday morning report. “Sentiment toward Ether has been improving, with long-term investors taking advantage of the recent price dip.”

The cryptocurrency’s Relative Strength Index (RSI) recently dropped to around 35%, a level that has previously indicated oversold conditions, with several previous rebounds occurring from similar points, according to crypto analytics firm 10x Research.

The upcoming Pectra upgrade in March is also expected to provide additional support for Ether’s price, potentially generating renewed excitement within the crypto community. Furthermore, Wednesday’s U.S. CPI inflation report, if it aligns with analyst expectations of 2.9% or lower, could further improve crypto market sentiment and provide a boost to Ether’s price.

Currently, Ether is testing key resistance at $2,650, with a breakout above this level potentially pushing the price toward $3,000. 10x Research analysts highlighted that Ether could see substantial gains if it manages to break past this barrier.

Ether has seen a 20% drop over the past month, with altcoins broadly underperforming against Bitcoin, which has remained stable around $100,000. However, if Ether successfully rebounds to $3,000, it could represent a 13.5% upside from its current price of $2,644, signaling a promising outlook for ETH in the near term.