The cryptocurrency market witnessed a brief recovery last night, with Bitcoin briefly reclaiming the $100,000 mark and Ethereum managing to overcome a significant downturn. However, the bullish momentum was short-lived as Bitcoin fell back below the $100,000 threshold, and Ethereum failed to sustain its gains, continuing its downward trajectory.
As Ethereum struggles to hold ground, the cryptocurrency’s price fell below the critical $2,700 level, triggering concerns about its next move. On the daily chart, Ethereum formed a strong bearish candle closing under the key psychological support of $3,000. This was followed by a long-tailed hammer candle signaling some fightback, with Ethereum hitting a low of $2,150 in the 24-hour period. However, the price has since dropped back below the $2,700 mark, and the formation of a bearish engulfing candle suggests more downside risk.
Ethereum’s current price action shows the coin testing the 23.6% Fibonacci support at $2,665, with bearish volumes increasing. The ongoing stretch of the lower Bollinger band points to the continuation of the bearish trend unless a significant reversal occurs. The broader market volatility and ongoing geopolitical tensions, such as the U.S. trade war, are adding to the uncertainty surrounding Ethereum’s performance.
In contrast, some investors see the current market dip as an opportunity. Donald Trump’s World Liberty Financial recently moved $307.41 million into Coinbase, purchasing 1,826 ETH worth nearly $505 million. Eric Trump also expressed his bullish stance on Ethereum, suggesting that the dip could present a prime buying opportunity.
Additionally, institutional interest in Ethereum has picked up, with Ethereum ETFs recording $83.6 million in inflows on February 3. Major players like Fidelity and Grayscale have significantly increased their ETH holdings, signaling continued faith in Ethereum’s long-term potential despite short-term bearish pressure.
Also Read: Ethereum Soars to $2.9K After Eric Trump’s ETH Investment Call: Is Now the Time to Buy?
As Ethereum hovers around critical support levels, the coming days will be crucial in determining whether the bulls can regain control or if further downside will unfold. If Ethereum holds above $2,665, a potential reversal could push prices back toward the $3,000 mark. However, failure to maintain this support may lead to a retest of the $2,224 level.
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.
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