With Bitcoin retracing its steps back to the $97,000 mark, Ethereum is also taking a step back to retest its bullish dominance at $2,700. This comes amidst increased market volatility, with the Fear and Greed Index currently situated in the fear zone, at 35.
Ethereum has seen a decline of 4.17% over the last 24 hours, adding to its 7-day decline of 16.49%. The bulls are having a tough time maintaining their dominance above the $2,700 mark, and ETH price analysis suggests a potential rally following a triangle breakout pattern.
The daily chart shows that Ethereum’s price trend is heavily influenced by the Asian trend line, which is currently ruling the market landscape. Under this influence, Ethereum has seen a fall from its recent swing high of $4,105 to the current price of $2,704.
This significant 34% drop in Ethereum’s value over the past two months is noteworthy. However, Ethereum continues to stay above its local support trend line due, in part, to recent lower price rejections.
Now, Ethereum finds itself caught within a triangle pattern as two trend lines converge. The price is testing the bottom support level, a critical junction that will decide the future direction of its price.
Despite the overall bearish trend in the cryptocurrency market, institutional demand for Ethereum remains high. On February 6, while 8 out of 9 Ethereum ETFs reported net-zero flow, BlackRock was the only buyer, acquiring $10.65 million worth of ETH. This brought BlackRock’s total inflow to a whopping $4.42 billion, making it the most prominent ETF holding Ethereum.
Investor sentiment remains robust in Ethereum. Michael van de Poppe recently noted that investors have purchased over $500 million worth of Ethereum through Ethereum ETFs over the past week. He stated, “They are not buying because they assume the bull market is over.” This shows that the institutional market remains optimistic about Ethereum’s potential in the crypto bull run.
There have been significant changes in Ethereum’s whale holdings amidst its strong institutional support. Ethereum holdings worth over $10 million fell from $379.36 billion to $312.93 billion, a 17.51% decline over the past week.
As institutional support for Ethereum continues to grow, its market price will likely reflect this demand eventually. However, if the local support trend line fails to hold, Ethereum could see a significant drop, potentially testing the recent low around $2,150. This could also put immense bearish pressure on the psychological $2,000 support level.
