Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been a cornerstone of the cryptocurrency market. Recently, it saw a notable 8.8% price increase in just 24 hours. This has led experts, like Matthew Sigel, Head of Digital Assets Research at VanEck, to believe that Ethereum may have been oversold. Sigel predicts that a renewed speculative interest could drive Ethereum’s market recovery.
Ethereum’s Road to Recovery
Ethereum has had a tough year, especially when compared to Bitcoin (BTC), with the ETH/BTC pair reaching multi-year lows. However, recent developments in the market indicate a potential change in Ethereum’s fortunes.
Meanwhile, Matthew Sigel remains optimistic about Ethereum’s future. He believes the cryptocurrency is currently “oversold,” indicating that its price may be undervalued.
.@matthew_sigel “I think ETH is oversold…Speculation will come back to this market and I don’t think it’s going to ignore Ethereum.” https://t.co/5pMcZBLzfi
— VanEck (@vaneck_us) November 7, 2024
However, Sigel predicts that with renewed market interest and investment, Ethereum could see a significant rally in the coming months. Despite the recent struggles, Sigel is confident that a recovery is on the horizon.
Positive Sentiment on Ethereum’s Rise
Many analysts are now bullish on Ethereum, believing that a significant rally could be ahead. Prominent crypto trader Byzantine General suggests that Ethereum might be preparing for a “monster rally.”
This prediction is backed by analysts like Benjamin Cowen, who highlights the ETH/BTC trading pair as a key indicator. Cowen believes that if this pair breaks above its Simple Moving Average (SMA), Ethereum could soon experience 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.
