Ethereum (ETH) has been under intense selling pressure, raising concerns among investors about the coming weeks. The trend remains bearish, and if this momentum continues, ETH could struggle to find support at key levels. Compared to Bitcoin and other altcoins, ETH has been underperforming, fueling a negative outlook among traders.

Unlike previous market cycles where ETH moved in sync with Bitcoin, recent price action suggests a disconnect between the two assets. Key metrics from IntoTheBlock reveal that ETH remains largely uncorrelated to BTC, showing a 30-day price correlation of just -0.06. This lack of correlation means that Bitcoin’s bullish momentum hasn’t translated into strength for ETH, adding to investor uncertainty.

With Ethereum lagging behind other major cryptocurrencies, analysts warn that further downside is possible unless ETH can reclaim critical resistance levels. The market is closely watching whether ETH can find support and reverse this underwhelming price action or if the bearish trend will continue in the coming weeks. As ETH struggles to regain momentum, investors remain cautious, waiting for a clearer signal before making their next move.

Ethereum Correlation With The Market

Ethereum has been stuck in a downtrend since late December, dropping over 28% from its local high of $4,100. Despite Bitcoin’s bullish momentum, ETH has failed to gain traction, leaving investors concerned about its underwhelming price action. Many are now speculating whether Ethereum could face another disappointing year, as altcoins like Solana, Avalanche, and Polygon continue to outperform ETH in terms of price movement and investor interest.

Key metrics from IntoTheBlock provide an interesting insight into Ethereum’s market behavior. Unlike in previous cycles where ETH closely followed BTC, it now appears largely uncorrelated, with a 30-day price correlation of just -0.06.

This means that even as Bitcoin moves higher, Ethereum has struggled to gain momentum. However, other major assets like Polygon (0.91) and Avalanche (0.93) remain closely correlated, suggesting that ETH’s price action is unique in this cycle.

Looking ahead, February could be a pivotal month for Ethereum. Historically, this has been a bullish period for ETH, and many investors are hoping for a trend reversal. If ETH can break key resistance levels and reclaim lost ground, the sentiment around its performance this cycle could quickly shift. However, failure to gain momentum could lead to continued stagnation, allowing other altcoins to take the spotlight.

Ethereum Struggles Below Key Support As Bears Take Control

Ethereum is trading at $3,090 after failing to hold above the 200-day Exponential Moving Average (EMA) at $3,137. This key level was a crucial support zone for bulls, but now that it has been lost, bearish pressure is mounting.

Bulls are in trouble, as the price action suggests ETH is gearing up for another leg down. If this selling pressure continues, ETH could set a new local low and test lower demand around the $2,900 mark. A breakdown below this level would signal a deeper correction, potentially leading to extended consolidation or further declines.

For Ethereum to regain momentum, bulls must reclaim the $3,300 level and push higher. This zone has acted as a strong resistance in recent weeks, and flipping it into support would confirm a trend reversal. However, if ETH fails to reclaim this mark, the next critical level to watch is below $3,000, where additional buying interest may emerge.

With market sentiment leaning bearish, ETH must hold above key demand zones to avoid a more significant downturn. If bulls cannot step in soon, Ethereum could continue to lag behind Bitcoin and other top altcoins.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH) has surged from $3,050 to $3,400 in less than three days, igniting fresh optimism among investors who believe ETH is poised for significant gains this year. After weeks of uncertainty and selling pressure, Ethereum’s latest price action has renewed bullish sentiment, with analysts predicting further upside.

Key on-chain metrics from IntoTheBlock support this outlook, revealing that Ethereum has an average holding time of 2.4 years, signaling strong confidence from long-term holders. This data suggests that despite short-term volatility, Ethereum investors remain committed, reinforcing the idea that ETH could see a sustained rally as market conditions improve.

With bullish momentum building, all eyes are now on critical resistance levels, which, if broken, could push Ethereum toward multi-month highs. However, investors remain cautious, as Ethereum still needs to reclaim its previous all-time highs to fully confirm a new bullish phase. The coming weeks will be crucial in determining whether ETH can maintain its uptrend and outperform the broader market in 2024.

Ethereum Faces Uncertainty But LTHs Show Confidence

Ethereum has been in a persistent downtrend since late December, with its price falling over 28% from local highs of $4,100. Compared to Bitcoin’s performance, ETH has underwhelmed investors, leading to speculation that 2024 could be another “bad year” for the second-largest cryptocurrency.

Despite these concerns, on-chain data from IntoTheBlock suggests a different outlook. Metrics reveal that Ethereum’s average holding time is 2.4 years, highlighting strong confidence from long-term holders. This indicates that despite the current price struggles, ETH investors continue to accumulate and hold, anticipating future gains.

However, Ethereum’s growth potential appears somewhat tempered as Layer 2 solutions (L2s) and alternative Layer 1 (L1) blockchains continue to fragment attention and adoption. Newer investors and developers are exploring competing ecosystems, leading to a lack of fresh short-term participants in ETH’s network. This shift has created uncertainty around whether ETH can maintain its dominant position in the altcoin space.

The coming weeks will be crucial for ETH, as February has historically been a bullish month for the asset. If Ethereum can reclaim key resistance levels and attract new demand, a reversal could be on the horizon, offering investors renewed confidence in its long-term potential.

ETH Price Outlook: Key Levels To Watch

Ethereum (ETH) is currently trading at $3,320 after a volatile Friday that saw the price surge to $3,448 before retracing below $3,300. Despite the price swings, ETH looks strong and poised to break out of its downtrend.

If bulls can hold above the $3,300 mark and push past $3,500 over the weekend, ETH could enter a massive rally toward the $4,000 level. This would signal a trend reversal, attracting fresh demand and reigniting investor confidence.

However, the risk of further consolidation or even a correction remains. If ETH fails to maintain current support levels, it could lead to increased selling pressure, pushing the price back to test lower demand zones. Losing the $3,200 mark would indicate weakness, potentially delaying Ethereum’s bullish breakout.

For now, ETH remains at a critical juncture, with investors watching closely to see whether bulls can sustain momentum and reclaim key resistance levels. The weekend price action will be pivotal in determining Ethereum’s next major move, setting the tone for the coming weeks.

Featured image from Dall-E, chart from TradingView

Ethereum (ETH) surged past $3,400 today, marking the second consecutive day that the digital asset has outperformed Bitcoin (BTC) in price action. Meanwhile, Donald Trump-linked decentralized finance (DeFi) project, World Financial Liberty (WFL), continues to accumulate more ETH.

Ethereum Crosses $3,400, ETH Holders Rejoice

Momentum appears to be shifting in favor of the second-largest cryptocurrency by market cap, as ETH soared past $3,400, registering a 4.4% gain in the past 24 hours. Analysts are now predicting strong price appreciation in the near future.

Crypto analyst Ted noted that ETH has entered its short-term expansion phase and could climb to $4,000 before experiencing any significant pullback. Furthermore, they projected that ETH could hit $4,500 in February, followed by a new all-time high (ATH) in March—especially if Trump’s WFL continues its aggressive ETH purchases.

Indeed, Trump’s WFL has been accumulating ETH at an impressive rate. Earlier today, Ted highlighted that the WFL wallet had purchased another $10 million worth of ETH. This follows an earlier acquisition of 6,041 ETH – worth $20 million at prevailing market prices – reported earlier this month.

Additionally, ConsenSys CEO Joseph Lubin recently hinted that the Trump family may leverage the Ethereum blockchain to launch new business ventures. However, details on the nature and timing of these ventures remain unknown.

Crypto trader Altcoin Scholar shared their insights on ETH’s bullish price momentum. The trader emphasized that ETH is currently trading within a large ascending triangle formation on the weekly chart, and a breakout above the $4,000 resistance level could skyrocket ETH to new ATHs.

How Are Ethereum Whales Reacting?

One of the best ways to gauge sentiment around a cryptocurrency is by tracking the trading activity of its largest holders. In this case, monitoring ETH ‘whales’ – investors with significant holdings – can provide insight into their confidence in the asset’s future price potential.

Recent on-chain data points toward huge accumulation by ETH whales. Between January 10 and January 17, large holders amassed more than $1 billion worth of ETH.

Most recently, 13 ‘mega whales’ – each holding more than 10,000 ETH – joined the network, further reinforcing the rising confidence among institutional and high-net-worth investors. At the same time, the Ethereum smart contract network continues to see an influx of new users.

However, not all ETH whales share the same bullish sentiment. Recently, one major holder sold more than 10,000 ETH at a loss exceeding $1 million. At press time, ETH trades at $3,422, up 4.4% in the past 24 hours.

Featured Image from Unsplash.com, charts from X and TradingView.com