TLDR
- On Monday, Ethereum plunged by a dramatic 27%, hitting $2,080, but swiftly rebounded by 38% within the same day, showcasing the market's resilience.
- Since February 2, a whopping 340,000 ETH, getting close to $920 million in value, has left the exchange platforms. Meanwhile, nearly 11,000 ETH moving into ETFs highlights encouraging market sentiment.
- A technical review hints at a potential 10% decline to $2,474, before a probable climb to $3,000, with solid support in the $2,400-$2,500 range.
- The ETH/BTC valuation has plummeted to a five-year low of 0.027, marking a 70% decrease since the network's shift to a proof-of-stake model in 2022.
- Despite the recent whirlwind market, Ethereum ETFs have consistently seen positive inflows since January 30, signaling enduring institutional interest.
The crypto sphere experienced a noteworthy influx of volatility as Ethereum took investors on an emotional rollercoaster ride on Monday, with a 27% drop that touched $2,080, only to execute a remarkable 38% recovery within the same day. Insights gathered from multiple cryptocurrency exchanges reveal around 340,000 ETH, approximately valued at $920 million, left the exchanges since February 2. This notable reduction aligns with the growing demand among large investors, shown by ongoing inflows into spot Ethereum ETFs.
The abrupt price fluctuation created an eye-catching wick on the daily trading charts, leading experts in technical analysis to anticipate that a short-term correction toward the wick's midpoint, approximately $2,474, could precede a more solid upward trajectory.
Data mined by IntoTheBlock, through their IOMAP indicator, points out a robust support threshold at $2,438, where about 2.71 million addresses hold 58.55 million ETH. This zone of support corresponds with technical forecasts and presents a pivotal price floor for potential future actions.
Focusing on the institutional landscape, Ethereum ETFs reported an inflow of 10,980 ETH on February 4, as per CoinGlass statistics. These instruments have been on a positive inflow streak since January 30, showcasing unwavering institutional trust in ETH, even amidst the tumultuous market.
A notable 77% of trading sessions for the ETH/BTC metric have resulted in losses,
— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_)
That wick, just brutal. pic.twitter.com/Xrtslr0PeM
Metrics from Santiment indicate February 3, 2025
exchange-held Ethereum dropped from 10.86 million to 10.52 million between February 2 and February 5. But this recent exodus follows a prior stretch of supply increase on exchanges, attributed to 210,000 ETH streaming into exchanges from January 21 to February 2. that ETH The broader crypto landscape unveils fascinating changes in Ethereum's dynamic with Bitcoin. The ETH/BTC figure stands at 0.027, marking its lowest point in more than five years, a decline of 70% following Ethereum's 2022 transition to proof-of-stake.
Research on trading behaviors by crypto analyst James Check reveals that a notable 77% of ETH/BTC trading periods showed subpar performance, shedding light on Ethereum's comparative frailty against Bitcoin over this interval.
The acceptance and rollout of spot cryptocurrency ETFs in the US has altered market mechanics. While Bitcoin ETFs have seen investments surpassing $40 billion,
Ethereum's ETF offerings, which gained approval subsequently, have experienced relatively restrained inflows. Ethereum Blockchain analytics suggest that despite the recent market turbulence, long-term holders haven't resorted to panic selling. The bulk of ETH movement appears to be from short-term trading and institutional repositioning.
The technical perspective identifies potential support bands between $2,400 and $2,500, regions that resonate with both blockchain data and historical trading frameworks. These zones may serve as collection points for investors aiming to set up new trades.
Market liquidity statistics point to solid trading activities across significant exchanges, with the recovery rally being joined by strong buying and liquidations of short positions. Such movements indicate engagement from both personal and institutional traders.
Moving a vast quantity of ETH from exchanges is generally seen as a lowering of immediate sell pressure, as assets transferred to personal wallets are often linked to longer-term hold strategies.
Daily trading figures at the height of Monday's market volatility reached peaks unseen for months, with the futures markets experiencing considerable clearances of both bullish and bearish positions. This reset in the derivatives space might have alleviated some of the accumulated tension.
Recent intelligence shows ETH exchange outflows persisting, maintaining momentum into the early trades of Tuesday. Trading volume stays elevated compared to the month's average, suggesting ongoing interest in this asset.
Blockonomi's Editor-in-Chief also founded Kooc Media, a UK-based online company championing open-source software, blockchain technology, and a free and equitable internet for everyone.
