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crypto.news 2025-02-11 09:43:49

Here’s why Ethereum price ‘may be primed for rebound’

Ethereum’s recent price decline suggests a potential rebound, with technical indicators hinting at oversold conditions. Ethereum’s ( ETH ) price has dropped to levels that usually signal it might be ready for a rebound, blockchain firm Matrixport says. In a Feb. 11 research note , the analysts pointed out that the Relative Strength Index is now showing signs of oversold conditions, which often point to a potential price recovery. Despite the positive technical signals, the mood around Ethereum remains cautious, to say the least. Short interest in Ethereum has surged by 500% since November 2024. On top of that, just in the past week, it’s jumped another 40%. The increase in short positions seems to show that investors are feeling bearish and betting against ETH. However, this could also set the stage for a short squeeze, which might push the price higher. You might also like: ‘Make me feel emotional desire to quit:’ Ethereum’s Buterin frustrated by community’s focus on ‘degen casino’ Still, Ethereum’s price has been struggling, even though spot Ethereum exchange-traded funds have seen big inflows. Even with $500 million flowing into spot Ethereum ETFs, its price has stayed flat, still far below its all-time high from November 2021. However, long-term investors, including groups like the World Financial Liberty, linked to President Donald Trump, are still buying more Ethereum, suggesting there’s some belief in its future growth. While it’s uncertain if Ethereum will recover soon, Matrixport suggests that several testnet deployments of Pectra in March could act as potential “bullish catalysts.” As of press time, Ethereum is trading at $2,715, with its market capitalization staying at $327.5 billion. Read more: 3 reasons why Ethereum price may go parabolic soon