3 reasons why Ethereum can hit $3K in the short term despite overvaluation risks

Ethereum’s native asset, Ether (ETH), dropped after reclaiming its two-month high in the previous session, suggesting that its recent bullish rally was nearing exhaustion.

In detail, the pair topped out at $2,699 on Sunday for the first time since June 7. The pair’s peak level also pushed its relative strength index (RSI), a momentum-gauging indicator, above 70 — a mark that analysts consider overbought.

Ether eyes a run-up toward $3.25K based on a Falling Wedge breakout setup. Source: TradingView
Ether reserves and netflow from crypto exchanges. Source: CryptoQuant
The number of unique 32 ETH depositors crosses 4,000. Source: CryptoQuant