In the first week of February, Ethereum (ETH) faced multiple downward obstacles. Network contentious updates and increased supply in circulation were among the factors hindering its growth. Economic tensions from the US-China trade war added more pressure to the market. From February 1st to 7th, Ethereum’s price dropped by 20% from $3,300 to $2,600. However, after February 7th, the selling pressure decreased, halting the downward trend. Yet, Ethereum has not been able to recover from last week’s losses. While major altcoins like Binance Coin (BNB) and Solana (SOL) saw growth over the weekend, Ethereum remains in the range of $2,500 to $2,700. This price stabilization mirrors Bitcoin’s trend and indicates investors’ uncertainty and their market direction anticipation. Alongside Ethereum’s price slump, investors are diverting attention to a wider altcoin market. On February 9th, blockchain security platform PeckShield identified the transfer of 50,000 ETH (worth about $131.6 million) by the Ethereum Foundation. This transfer was not a direct sale but tokens were moved to a new multi-signature wallet designed to support the DeFi ecosystem. This could be a bullish sign, indicating increased investment in DeFi projects and ecosystem development. However, historical data shows that Ethereum’s price usually drops after a significant amount of ETH is moved by the Ethereum Foundation. Such transfers can instill fear among holders and raise concerns about further sell-offs. Price charts indicate Ethereum is still in a stabilization trend near $2,575. The previous descending triangle pattern that led to a rally has been invalidated by recent breakdown, increasing short-term downward risk. Trading volume analysis also shows a decrease in buyer participation, signaling market uncertainty. Additionally, the Relative Strength Index (RSI) at 29.61 indicates oversold conditions, with a possibility of a technical rebound, but the decreasing trend of the index shows the trend’s weakness. In a bullish scenario, Ethereum must maintain the $2,750 support level to restore market confidence. Breaking this level could trigger new buying pressure and pave the way for a rise to $3,000, a significant resistance area. However, in a bearish scenario, if Ethereum fails to hold the $2,500 level, selling pressure will intensify, possibly pushing the price down to $2,400 or lower. On the live digital currencies page, you can see the prices of all tokens and cryptocurrencies live and in real time.
