The second-largest cryptocurrency has experienced a slight rebound in the past week, with many analysts suggesting that a more significant increase may be forthcoming. Certain technical indicators bolster the bullish outlook and may indeed establish the groundwork for a more significant recovery. Following the significant lows observed in June, the bulls managed to recover a portion of the losses and even momentarily elevated the price beyond $1,800 over the weekend. However, the bears presented formidable resistance, and ETH is presently trading at approximately $1,750, reflecting a 1% increase over the past week.
According to X user Ted, such a level can be interpreted as a positive indicator, suggesting that sellers are no longer in control. He believes that maintaining a position above the $1,750 support zone is essential and could pave the way for a rally towards $2,000. Michael van de Poppe expressed heightened optimism, anticipating that the forthcoming breakout could propel ETH to $2,500. AlΞx Wacy asserted that the asset must surpass a specific descending trendline, which has historically triggered 250% increases within weeks. The analyst pointed out that this critical threshold sits at around 1,880.
Altcoin Sherpa provided their perspective as well. While observing ETH’s price decline over the last several months, the analyst characterised it as “pretty attractive” in the short term with potential to rise to approximately $2,500. Ali Martinez also chipped in, vowing to open a long position in ETH if its price surpasses $1,850. It is important to note that his previous take on the asset was rather bearish, outlining that its TD Sequential indicator flashed a sell signal, which could be followed by a plunge to as low as $1,700.
ETH’s Relative Strength Index underscores the prevailing optimism expressed by the analysts mentioned earlier. The technical analysis tool, with a ratio ranging from 0 to 100, has declined to approximately 30, suggesting that the asset has entered oversold territory and may be poised for a rally. Conversely, readings above 70 are interpreted as signals that may precede a pullback. Next on the agenda is the diminishing quantity of ETH held on exchanges. Today, the figure has declined to approximately 15.3 million units, marking a level not seen in nearly a decade. Fewer coins on centralised platforms typically lead to diminished immediate selling pressure.