ETHUSD's quotes have surged nearly 50% over the past week, re-entering its February range of 2250-2850. Such rapid growth in a short time has pushed technical indicators into strongly overbought territory, and bulls are already starting to take profits. While yesterday’s 3% decline appears minor compared to the recent rally, the correction potential remains significant. For long entries, the 2400 level looks promising as a potential launchpad for a renewed upward move toward 2850.
Contrary to pessimistic forecasts, the Pectra update noticeably increased Ethereum's popularity in the cryptocurrency market. Bernstein analysts highlight the significant lag of Ethereum behind Bitcoin, their ratio has fallen by almost 45% over the past year. However, investors are now once again showing interest in ETHUSD, and the mass closing of short positions helped propel this coin to become one of the leaders in terms of value growth.
Following the Pectra update, the Ethereum Foundation has announced a new initiative to improve network resilience and security. The goal is to create a reliable infrastructure capable of storing and moving trillions of dollars in assets. The plans are quite ambitious, given Ethereum's current capitalization of around $300 billion. However, Bernstein experts believe that this figure is quite achievable with continued growth in stablecoin payments and the tokenization of securities.
According to Coinglass, over the last day, traders closed long positions on ETHUSD totaling $74.1 million, and short positions totaling $31 million. Based on this, we can conclude that the scale of the correction is moderate. At the same time, large investment funds managing Ethereum ETFs continue to record liquidity inflows. In particular, BlackRock's ETHA attracted $57.6 million, while Fidelity's FETH fund — $5.9 million.
The RSI and Stochastic indicators point to a high probability of a continued pullback in Ethereum's price. Traders may return to buying within the 2400-2500 range, aiming for the 2850 level.
Consider the following trading strategy:
Buy ETHUSD in the range of 2400-2500. Take profit – 2850. Stop loss – 2250.
This content is for informational purposes only and is not intended to be investing advice.
