Ethereum Price Faces Correction: What’s Next for ETH in February?
Ethereum Price– Ethereum’s price surged by over 5% last week but opened the final week of February with a bearish outlook. As of Monday, the second-largest cryptocurrency by market capitalization saw a drop of more than 3%, trading around $2,725 during the mid-European session. Ethereum currently holds a fully diluted valuation of $329 billion, with a 24-hour average trading volume exceeding $25 billion.
Ethereum has been navigating a correction since early December 2024, characterized by a series of lower lows and lower highs. Technically, the price of Ether is forming a bearish flag on the daily timeframe, with a significant resistance around the $2,844 level.
If Ethereum’s price continues to slide, it is expected to retest a critical support level of approximately $2,560 in the coming days. Should the price breach this support range (between $2,560 and $2.6K), the next logical step would be a capitulation towards $2.2K, marking a further decline. This would establish a horizontal price channel with a range from $4K down to $2.2K, setting the stage for a potential breakout in the coming months.
Ethereum Price Outlook and Potential for a Reversal
However, if Ethereum manages to maintain momentum and consistently close above the key resistance level around $2.8K, the short-term bearish sentiment will be invalidated. In that case, the price could target $3.3K, which coincides with the 2.618 daily Fibonacci extension level.
Ethereum’s price movement continues to be sensitive to market conditions, and while the current outlook leans toward the downside, it is important to keep an eye on key price levels for any signs of reversal.
Ethereum Whales React to Bybit Hack
The recent Bybit hack, which saw over $1.4 billion in Ethereum stolen, has caused some unrest in the market. The attack is believed to be linked to the Lazarus Group, a hacking organization reportedly backed by the North Korean state. Following the breach, over $100 million worth of stolen Ether was converted into Bitcoin by the hacker.
Despite the hack, Ethereum whales have been reacting in mixed ways. On-chain data shows that Bybit took swift action, freezing $42 million of the stolen assets. Additionally, the exchange purchased 266,694 Ether, worth approximately $742 million, over the weekend, signaling a strategic move to maintain liquidity and bolster their holdings.
However, the recent hack has left institutional investors feeling uneasy. The US spot Ether ETFs recorded a net cash outflow of $26 million last week, signaling a decline in demand from large-scale investors amid security concerns.
Ethereum Network’s Growing Influence
Despite short-term challenges, Ethereum remains a dominant force in the blockchain and cryptocurrency space. As of the latest data, Ethereum’s network boasts a total value locked (TVL) of over $58 billion, with a market capitalization of $122 billion in stablecoins. These figures reflect Ethereum’s pivotal role in supporting the growth and adoption of Web3 protocols and digital assets.
Ethereum’s TVL has experienced significant growth, increasing from 13.46 million ETH to approximately 21.6 million ETH over the past 12 months. Moreover, more than 33.5 million ETH has been staked to secure the network, with over 100,000 validators involved in the process, primarily led by Lido DAO (LDO).
Ethereum’s network continues to push forward in its mission to revolutionize finance, decentralized applications (dApps), and other Web3 technologies. Despite the current price fluctuations, the network’s underlying infrastructure and commitment to innovation remain strong, contributing to its long-term prospects.
Final Thoughts on Ethereum’s Future
Ethereum is undoubtedly facing some technical and market challenges in the short term, but its long-term outlook remains positive. If the price holds above key levels, a potential reversal could lead to significant upside. However, as the network continues to grow and expand its capabilities, Ethereum remains one of the leading assets in the cryptocurrency space, continuing to attract both retail and institutional investors.
As Ethereum’s ecosystem continues to mature, its dominant position in decentralized finance (DeFi), NFTs, and Web3 technologies could drive further growth. Investors and traders should remain vigilant, closely watching market trends and price action to better understand the broader impact of these developments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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