Key Points
- Ethereum’s price has been under bearish pressure, trading below $3000, with a market sentiment at its lowest.
- Analysts predict a potential rebound in Ethereum’s price, citing signals from the TD Sequential indicator.
Ethereum’s price has been experiencing a strong bearish sentiment, trading below $3000 with no signs of a relief rally. Ed Hindi, co-founder of the Swiss investment firm Tyr Capital, noted that the market sentiment for Ethereum has hit an all-time low. However, he believes this could potentially increase the likelihood of a price reversal.
Hindi stated, “Ethereum has reached peak ‘bearishness’ and is now at a tipping point. Weak hands have been flushed out of the market,” in a market report on February 13. He drew parallels between the current Ethereum market and the Bitcoin market before the launch of spot exchange-traded funds (ETFs) for cryptocurrency in the US in January 2024. Hindi anticipates that institutions holding Bitcoin will start adding Ethereum to their portfolios.
Ethereum’s Recent Price Rally
On February 13, Ethereum’s price rallied 3.5%, surpassing $2750. This rally was triggered by the news of 21Shares filing for staking on a spot Ethereum ETF. The move is seen as a positive development as the Trump administration has shown a more crypto-friendly stance. SEC Commissioner Hester Peirce has also hinted at allowing this facility. Staking on a spot Ethereum ETF would enable investors to earn more yield and returns over and above the Ethereum price appreciation.
However, the gains were short-lived as the bullish sentiment quickly faded. Ethereum’s price is still hovering around $2700, awaiting another catalyst to push it beyond $300K.
Potential Rebound for Ethereum
Ali Martinez, a popular crypto analyst, recently noted that Ethereum shows signs of a potential rebound. The TD Sequential indicator signals a buy on the weekly chart. Crypto analyst Captain Faibik also predicts a major comeback for Ethereum, urging investors to accumulate before it’s too late. He points to $3000 as the key resistance level, asserting that reclaiming this resistance could trigger an explosive rally.
Ethereum developers have released the client software for the Pectra deployment on the Holesky and Sepolia testnets. The mainnet launch for Pectra is scheduled for April. Before the upgrade arrives on the mainnet, developers will first implement it on the testnet to verify functionality and minimize risks to real assets. The upcoming upgrade will first undergo testing on Holesky on February 24, followed by Sepolia on March 5. These tests aim to replicate network conditions, evaluate performance, ensure compatibility, and address any issues before the final rollout to the main network.
