Recent events show that Ethereum has entered oversold territory. This is undoubtedly a bullish development for the The second largest cryptocurrency by market cap as it looks poised for a price rally that could take it as high as $6,000.
ETH is ready to take off after entering oversold territory
Cryptocurrency Analyst Titan of Crypto In a post on X (formerly Twitter), he suggested that Ethereum is ready to take off, having entered oversold territory. He noted that historically, ETH experiences a short-term rally or surge whenever the price of Ethereum hits its all-time high. relative strength index (RSI) is in or near oversold territory on the 3-day chart.
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While it remains to be seen whether it will be a rally or just a short-term surge, Titan of Crypto added that an upward move seems to be right around the corner for Ethereum in any case. The accompanying chart shared by the cryptocurrency analyst showed that ETH could reach $6,000 if it is a price rally, while the cryptocurrency will reach at least $3000 if it is just a short-term surge.
Cryptocurrency analyst Crypto Wolf also recently shared a Ethereum He noted that sentiment is at an all-time low and collective interest in ETH is fading. He added that based on his updated chart, TH is likely approaching a bottom. In line with this, he called for patience as Ethereum will experience a bullish reversal once it finds a bottom.
The accompanying chart shows that Ethereum could rally to $2,900 following a price recovery and will target $5,600 if it breaks the resistance at $3,900. Cryptocurrency Analyst Poisedon He also hinted at an imminent ETH price recovery, claiming that manipulation has occurred and it is time to expand.
The attached Poseidon chart indicated that ETH must reclaim $2600 if the market structure is to shift to the upside. According to the cryptocurrency analyst’s analysis, this shift to the upside could send Ethereum hits $3200 in the near future.
Ethereum Spot ETFs Have a Role to Play
He Ethereum Spot ETF It will certainly play a role in any potential ETH price recovery. According to data According to SoSo Value, these funds have witnessed a cumulative total net outflow of $562.31 million since their launch on July 23, putting significant selling pressure on the ETH price.
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These exits have been largely due to selling pressure from Grasyacle Ethereum Trust (ETHE)similar to what happened with Grasyacle’s Bitcoin Trust (GBTC) after the Bitcoin Spot ETF Bitcoin fell as low as $38,000 back then before rising to its current all-time high (ATH) of $73,000 after selling pressure from Grayscale eased.
Therefore, ETH could also enjoy a parabolic rally if the same situation occurs again, with selling pressure from Graysale’s ETHE easing and others Ethereum Spot ETF witnessing impressive influxes.
At the time of writing, Ethereum is trading at around $2,320, down more than 3% in the past 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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