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- AAVE and ETH remain under pressure amid extreme market fear.
- Technical structures show support, but sentiment still dominates direction.
- Short-term forecasts suggest rebounds are possible if buyers return.
The crypto market remains under pressure, with major assets sliding amid thin liquidity and risk-off sentiment. Both Aave and Ethereum posted fresh losses over the past 24 hours, reflecting a broader downturn across digital assets. Yet despite bearish momentum and extreme investor caution, short-term models suggest both tokens could see a rebound before the end of February — if buyers return.
AAVE Struggles in Weak Market Conditions
AAVE dropped to around $114.62, falling alongside the wider market. The token has been on a prolonged decline, down more than 27% in the past month and over 50% year-on-year. Sentiment remains fragile, with most technical indicators signaling continued downside risk and the Fear & Greed Index showing extreme fear.
Still, the structure is not entirely negative. The token continues to hold above its 50-day and 200-day moving averages, suggesting long-term support remains intact. Key levels to watch sit near $116 and $112 on the downside, while resistance stands around $120–$125.
Forecast models indicate a potential move toward $137 by February 28 — roughly a 20% gain from current levels. However, such a move would likely require a sharp improvement in liquidity and investor confidence.
Ethereum Shows Similar Pattern of Fear vs. Opportunity
Ethereum’s performance reflects the same tension between panic and potential recovery. ETH recently slipped to roughly $1,861 after a steep daily drop, extending a month-long selloff exceeding 37%.
Despite heavy losses, projections suggest ETH could rebound toward $2,165 in the coming days, representing a potential double-digit percentage gain. The token still trades above long-term moving averages, hinting that structural support remains intact even as short-term sentiment weakens.
Support sits near the $1,890–$1,934 range, while resistance begins around $1,978 and stretches toward $2,020. These levels may determine whether buyers regain control or the downtrend deepens.
Market Sentiment Remains the Deciding Factor
For both AAVE and ETH, the key variable is sentiment. Extreme fear often precedes volatility spikes, and crypto markets are known for rapid reversals. Still, forecasts remain uncertain in a market defined by low confidence and unpredictable liquidity flows.
Also Read: Avalanche Volume Jumps 25% as Ethereum Bottom Debate Intensifies
If buyers step back in, short-term rebounds are possible. If fear persists, both assets could remain trapped in consolidation or further decline.
AAVE and Ethereum currently sit at a crossroads. Technical structures show resilience, but sentiment remains deeply negative. Forecasts point to potential rebounds, yet those gains depend entirely on whether confidence returns to the market. In crypto, momentum can change quickly — but until buyers show conviction, caution remains the dominant theme.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
