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Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Nov 07, 2024 13:35 UTC
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Is Ethereum Oversold? Experts Predict $3,000 ‘Monster’ Rally Ahead
Ethereum's recent 8.8% price increase has sparked optimism among experts, who believe it may have been oversold.
Analysts predict a potential "monster rally" for Ethereum, driven by factors like renewed market interest and technical indicators.
Ethereum's price action is currently cautious, but breaking the resistance level of $2,876 could lead to significant price growth.
Ethereum (ETH), the second-largest cryptocurrency by market cap, has been a key player in the crypto market. Recently, it experienced a notable 8.8% price increase in just 24 hours, raising hopes for a potential recovery. Experts, including Matthew Sigel, Head of Digital Assets Research at VanEck, believe that Ethereum may have been oversold, and a renewed wave of interest could drive its market recovery.
Ethereum’s Challenges Against Bitcoin
This year has been tough for Ethereum, especially when compared to Bitcoin (BTC), with the ETH/BTC pair hitting multi-year lows. However, recent market trends suggest that Ethereum’s fortunes may be shifting.
Meanwhile, Matthew Sigel remains optimistic about Ethereum’s future. He believes the cryptocurrency is currently “oversold,” indicating that its price may be undervalued.
He predicts that as market interest and investment grow, Ethereum could see a significant rally in the coming months.
Analysts Predict a Possible “Monster Rally”
Many analysts are becoming increasingly bullish on Ethereum. Notably, crypto trader Byzantine General suggests that Ethereum could be preparing for a “monster rally.” This prediction is supported by analysts like Benjamin Cowen, who points to the ETH/BTC trading pair as a key indicator.
Cowen believes that if this pair breaks above its Simple Moving Average (SMA), Ethereum could see significant price growth.
Ethereum’s Price Action
As of now, Ethereum’s price action shows a cautious sentiment in the market currently trading around $2818. Looking at the technical analysis Ethereum’s 50-day Exponential Moving Average (EMA) sits at around $2,744, and the 200-day EMA is at approximately $2,805, indicating a bearish trend in the short to medium term.
However, Ethereum’s Relative Strength Index (RSI), at around 57, suggests that Ethereum could be nearing oversold territory.
For Ethereum to maintain its momentum, it must break through the resistance level at $2,876. If successful, the next target could be around $3,000, with the ultimate goal of reaching $3,300.
Will Ethereum be able to break free from its recent slump? Let’s wait and watch.
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