After experiencing a recent price correction that dipped below the $2,300 threshold, Ethereum managed to maintain stability within a critical support zone. While a breach of this level could be concerning, there is still potential for a positive turn in favor of investors. Notably, Ethereum reached $2,380 on January 31 but underwent a corrective phase thereafter. CoinMarketCap reported a slight decline in ETH’s price over the last 24 hours, settling at $2,292.49 with a market capitalization exceeding $275 billion.
Analyst Michael van de Poppe, on February 4, highlighted a pivotal support level for ETH, emphasizing its resilience around $2,150. A breach of this support could signal a further downturn in the token’s price.
Despite the current uncertainty, there remains optimism for Ethereum’s future. If it successfully maintains its support, there is potential for a surge above $3,000 in the second quarter of 2024. However, current indicators, such as Santiment’s data showing red in both ETH’s Coinbase and Korea premium, suggest a challenging immediate outlook for ETH. At the time of the report, the prevailing selling sentiment among both US and Korean investors dominated the market. This sentiment was also evident on a broader scale.
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The decline in ETH’s exchange reserve chart, down to 10.3 million by January 28, signaled a significant reduction in supply. This decline, a typical bearish indicator, reflected diminished investor confidence in the asset.
Looking ahead to February, an analysis of ETH’s daily chart revealed a competitive struggle between bulls and bears according to the MACD. The Relative Strength Index (RSI) indicated a sideways trend near the neutral mark, suggesting a continuation of slow-moving days. The bearish outlook of the Chaikin Money Flow (CMF), showing a downtick, raised the likelihood of ETH testing its $2,150 support level in the near future.
Additionally, insights from AZC News analysis of Hyblock Capital’s data suggested the possibility of ETH encountering strong support around the $2,200 mark before reaching the $2,150 level. Notably, in November 2023, when ETH touched this point, it subsequently experienced an upward movement.
