ETHUSD sideways trend is well positioned to go up towards 2,950

Ethereum prices are consolidating sideways between 2,550 and 2,850 after a sharp drop in early February. This week has seen more clear attempts at growth, and even Tuesday's 3.7% drawdown did not make a serious difference. Buyers’ persistence may lead to the price moving upwards out of the current range in the next few days. The first target of the upward movement may be the 2,850 mark, followed by 2,950.

Investing.com analysts point to changes in investor positioning during the trading session on February 18. Despite a sharp decline in Ethereum price, an additional $4.6 million was invested in ETFs on the Ethereum. For reference, ETFs on Bitcoin recorded a liquidity outflow of more than $60 million. Currently, traders may not see bitcoin's potential for significant growth and pay attention to alternatives. 

The Block expects a rising demand for Ethereum as the Pectra update scheduled for April 8 approaches. According to the company, the market is increasingly betting on ETHUSD getting closer to the level of 3,000 by the end of the quarter. The Pectra update is expected to bring significant changes, including improved network performance, faster transactions and better staking mechanics.

Michael Ebiekutan of FxStreet sees another sign of an imminent wave of rising Ethereum prices. He estimates that investors withdrew about 740,000 units of Ethereum from exchanges over the past 2 weeks, and now over 84% of this cryptocurrency is held in private wallets. In case of a surge in demand for Ethereum, supply may not be enough. Hence, the cryptocurrency price has a good chance of skyrocketing. 

The main short-term target for ETHUSD bulls is the level of 2,850. In case of success, buyers will immediately shift to the levels of 2,950 and 3,000.

Consider the following trading strategy:

Buy ETHUSD at the current price. Take profit 1 – 2,850. Take profit 2 – 2,950. Stop loss – 2,550.