Ether (ETH), the second largest cryptocurrency by market capitalization, recently sunk to its weakest price compared to bitcoin (BTC) since late 2020
Second largest cryptocurrency Ether (ETH) hit its weakest price relative to bitcoin (BTC) since late 2020 in the trade war-fueled panic crash, but a relief bounce could be coming.
“ETH appears to be attempting to build some bullish momentum and could be looking to finally make a recovery back above $3,000,” wrote LMAX strategist Joel Kruger in a Tuesday morning note. “Sentiment towards the world’s second largest crypto asset has been back on the rise with many medium and longer-term participants stepping in to take advantage of the recent dip,” he added.
“ETH appears to be attempting to build some bullish momentum and could be looking to finally make a recovery back above $3,000,” LMAX strategist Joel Kruger wrote in a Tuesday morning note. “Sentiment towards the world’s second largest crypto asset has been back on the rise with many medium and longer-term participants stepping in to take advantage of the recent dip,” he added.
Ether's relative strength index (RSI), a key technical momentum indicator, fell to the 35% range, which preceded a recovery in several past instances from similarly oversold levels, noted crypto analytics firm 10x Research in a report.
The upcoming Pectra upgrade, which is scheduled for March, could also be bringing a "modest wave of hype" in the next few weeks, the report added. Wednesday’s U.S. CPI inflation report, if it comes in line with analyst forecasts of 2.9% or less, could also be boosting crypto market sentiment and fueling ETH higher, the report noted.
Ether is now facing strong resistance at around the $2,650 level, and a breakout could see prices heading for the next resistance level of around $3,000, the 10x Research analysts added.
Read MoreEther Has Underperformed, but Total Value Locked on Ethereum Is Rising: Citi
ETH lost 20% in the past month as the border altcoin market bled against bitcoin, which was consolidating sideways in a tight range around the $40,000 price level. The second-largest cryptocurrency was last trading down 1.5% on the day at $2,644, and a rebound from current levels to $3,000 would mark a gain of 13.5%.
