TL;DR
- Ethereum has seen a 7.39% increase in the last 24 hours, reaching a price of $2,811.13.
- Experts, such as VanEck’s Matthew Sigel, believe that Ethereum could be “oversold” and that a significant rally is ahead.
- Technical analysis suggests that Ethereum needs to break above the $2,876 resistance to reach $3,000 and potentially $3,300.
Ethereum, the second-largest cryptocurrency by market cap, has seen a remarkable 7.39% rally over the past 24 hours, reaching a price of $2,811.13, according to data from CoinMarketCap.
This surge has renewed optimism among investors and analysts who believe that Ethereum could be “oversold” and that its value could rise significantly in the coming days or weeks.
Matthew Sigel, head of digital asset research at VanEck, is one of the experts who believes Ethereum is undervalued right now.
According to him, the cryptocurrency may have been punished too much by the market in recent months, leaving room for a major rally.
Sigel has claimed that speculation around Ethereum will return, which could lead the cryptocurrency into a new bull cycle.
Moreover, the prediction of a major rally for Ethereum is supported by several technical analysts, including well-known trader Byzantine General.
This expert has pointed out that the accumulation of short positions in Ethereum could trigger a “short squeeze“, which could boost its price in an accelerated manner.
A “short squeeze” occurs when short sellers are forced to buy assets to cover their losing positions, increasing demand and, consequently, price.
Technical analysis also shows that Ethereum is currently struggling with key resistance levels.
According to the information gathered, the price of Ethereum should surpass $2,876 in order to continue its rise towards $3,000.
If the price manages to break that barrier, some analysts predict it could reach $3,300, which would represent a significant gain for investors.
However, while the price is in a cautious phase, the overall trend still seems to be in a consolidation phase.
The future of Ethereum and its challenges
Although the outlook for Ethereum is optimistic, the cryptocurrency still faces several challenges.
This year, it has struggled to outperform Bitcoin (BTC), and the ETH/BTC pair has hit multi-year lows.
However, some analysts believe that Ethereum could start to regain ground against Bitcoin, especially if the cryptocurrency market regains investor interest.
The future of Ethereum also depends on several external factors, including technical developments and the adoption of its network.
The migration to the Proof-of-Stake (PoS) blockchain and the integration of new improvements, such as the Sharding upgrade, could make Ethereum even more attractive to investors in the future.
However, as is always the case in financial markets, there are no guarantees, and volatility could continue to be a major factor to consider for future Ethereum price movements.
While technical analysis and expert predictions suggest that Ethereum could be on the cusp of a significant rally, the outlook remains uncertain.
The next few days will be crucial in determining whether Ethereum can break through its resistance levels and continue its ascent, or whether it will face further difficulties in the near term.