On Saturday, February 1st, Ethereum (ETH) price dropped below $3,150 as the digital currency market retreated after a volatile week. On-chain data indicates a decrease in whales’ demand for Ethereum, potentially exacerbating the price decline. The drop in Ethereum price followed a week of intense fluctuations influenced by Federal Reserve policies and conflicting economic data, impacting investor sentiment. Additionally, Bitcoin fell below $100,000, putting pressure on other major altcoins. Whales’ demand for Ethereum decreased by 22% in January, coinciding with network changes and market uncertainty. Whale transactions decreased significantly from 2,245 in December to 1,571 by January 31st, reflecting large investors reassessing their positions in the Ethereum market. Vitalik Buterin’s statements about the network’s roadmap have also caused uncertainty, prompting some traders to adopt a cautious approach. Technical analysis suggests Ethereum is at risk of losing support at $3,100, with a double top pattern reinforcing the possibility of further price decline. If this level is breached, the price could drop to $3,020. The Elder Force Index (EFI) has turned negative at -4.25, indicating increased selling pressure. Ethereum’s inability to reclaim the mid-Donchian channel at $3,272 signals seller dominance and a continuation of the downward trend. However, if buyers manage to push the price above $3,272, a short-term improvement towards the upper Donchian channel border at $3,525 is possible. Yet, in the face of persisting demand weakness, Ethereum may face further declines. Visit the real-time digital currency price page to track token and cryptocurrency prices live.
