Following a 5% weekly drop, Ethereum (ETH) has been caught in a bearish trend. However, some analysts believe its current overselling could set the stage for a potential rebound.
Ethereum’s price slid by 0.5% to $1,550 in 24 hours, marking an 8% decrease over the last two weeks and a 2% dip in the past 30 days.
Despite this, Ethereum remains up by 29.6% since the start of the year. The coin’s relative strength index has fallen from nearly 70 at the start of the month to 35, indicating that ETH might be oversold and is potentially gearing up for a rebound.
Ethereum’s 30-day exponential moving average has also declined, showing strong selling pressure. Additionally, the coin’s support level has dropped, suggesting that further dips could be imminent.
Yet, the heavy selling of ETH might attract traders looking to buy the coin at a discount. ETH’s undervaluation relative to its fundamentals suggests it may be a good time to buy.
Ethereum continues to dominate the crypto ecosystem in terms of Total Value Locked (TVL), accounting for approximately 63% of the sector’s total. The coin’s network and main layer-twos, such as Arbitrum, Optimism, Polygon, and Base, are contributing significantly to this dominance.
Analysts predict that Ethereum could return to $1,700 in the coming weeks, with a bullish end to the year potentially pushing it beyond $1,800.
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