The recent market crash has pulled prices to their lowest values. Bitcoin and Ethereum led the charge, especially with Bitcoin as the flagship token, to a base below $55,000. Investors were and are still concerned about whether the market will surge any time soon. By the looks of it, there is some scope for a rebound, and it is evident from the fact that the liquidation in the futures market is on the higher side.
A cooling period often follows the price drop. That is when fluctuations dip, and price charts notice a rebound. According to CryptoQuant’s data, investors are closing long positions on a regular basis. Liquidation last exceeded $120 million when Ether’s price slipped below $3,200 in March of this year, i.e., 2024. Since the token’s price awaits a rebound, there has been a dramatic spike of more than $160 million.
One question remains: Is this a good time to buy Ethereum?
Numerous perspectives exist on it, including bullish sentiments for the future. To begin with, ETH is projected to mark upticks in the days to come. This is supported by near-term predictions, wherein ETH is poised to trade at $2,883.29 in the next 30 days, which would be a surge of 5.82% from the current value. The 14-day RSI is neutral even though it is closer to marking the sentiment of underbought. Despite bearish sentiments, its value is hovering around 35.05.
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Another Ethereum forecast shows an upswing of 3.96% in the next 5 days, with a value of $2,832.73 at press time. If true, ETH could achieve the mark of $4,000 by the end of this year. Alternatively, ETH may likely shut its doors for around $3,600 before changing the calendar.
The weekly price action of ETH/USD shows that volatility is on the higher side, with an 11.69% change. The 50-day SMA and 200-day SMA show that the token is technically underperforming. Meaning there could be a rebound now that the correction is over.
External factors can still play around to hamper the upward trajectory. For instance, the Federal Reserve has hinted to cut rates in September. However, analysts believe that it is a little late for the Fed to take that step. Recession can still come back, and inflation has yet to settle near the target of 2%. Rate cuts will help investors borrow funds and redirect their allocation to riskier assets, crypto in this case. This provides ETH and other similar assets with a certain degree of liquidity.
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Ongoing political environments could also affect price movements on the chart. Nevertheless, a bullish rebound is likely due to Spot Ether ETF and the potential for more crypto ETFs to enter the market. That would fuel the US adoption and recognition of regulated crypto investment vehicles.
