Ethereum’s price rose 0.025% to $3,136 during trading on Jan. 30. On Jan. 29, Ethereum started trading at $3,100, and market research indicated investors would increase Ethereum purchases during February. With its falling wedge pattern, ETH has a built-in growth trajectory of 35% upon clearing its upcoming trading threshold.
Ethereum experts follow ETH price development while it remains locked in a downward triangle formation. As traders break out from this price formation, markets have a better chance of increasing.
The SEC deals with multiple legal battles that examine how it controls crypto rules within financial market operations. Multiple organizations challenge the SEC’s control through court action because they want better rules for digital assets. Ethereum’s new market position after legal outcomes will guide crypto laws worldwide.
Ethereum Eyes February Upswing After Weak January Performance
The Ethereum network is moving towards the end of January for the second straight year with declines, thanks to market instability and problems at its Ethereum Foundation. Ethereum has consistently performed well in February, making investors hopeful about its potential recovery from the current downturn.
Statistical analysis reveals that Ethereum earns positive returns in February more regularly than in any other month. In recent years, the crypto market has faced a serious drop, except during the entire 2018 cycle. ETH earned 46.28% in February 2024, boosting its usual seasonal strength. Ethereum generated an average return of 17.13% in February, ranking it among its most successful months. Based on past trends, ETH can potentially increase its performance next week.
On-Chain Data Points to Increased Investor Interest
On-chain data shows investors entering trades as they sense an ETH price rise ahead. Donald Trump’s DeFi operation on Arkham reports owning $250 million worth of Ethereum assets, including newly acquired and staked ones. The DeFi platform grew its Ethereum exposure during its latest portfolio update by purchasing AAVE LINK alongside ENA.
Based on Ethereum exchange data analysis, there is a greater demand for ETH purchases than for ETH sales. Many Ethereum users with money on exchange platforms chose to withdraw their funds this week because they plan to make purchases instead of sales.
On the weekend, Ethereum achieved its highest network activity by reaching 588,782 active daily users. The network’s highest annual DAA average over seven days proves more people now use Ethereum.
Ethereum ETFs See Outflows Despite Market Optimism
According to Coinglass data, Ethereum exchange-traded funds lost $136.20 million on Tuesday, although market indicators and investment actions suggest a positive trend. Institutional investors are taking a cautious approach due to uncertain market conditions.
Ethereum could rise strongly in the next weeks because of its past market patterns and growing user and investor enthusiasm, but only if it moves past important technical price barriers.
Ethereum Price Analysis
According to Coinglass statistics, $67 million was wiped out from Ethereum markets’ futures contracts in one day. The system cleared $32.48 million of buy positions and $34.52 million of sell positions.
The cryptocurrency shows a falling wedge pattern that touches lower support and resistance lines to form a descending slope. The technical community reads this pattern as a good sign since bearish selling pressure is fading.
According to market experts, breaking through the upper wedge resistance line would boost ETH by 35% and take prices beyond the $4,100 peak it reached three years ago. The $4,100 threshold is our biggest challenge because traders expect it to be a major sell point throughout 2024. The price finds further obstacles at the $3,550 and $3,770 resistance points.
Technical indicators present mixed signals. RSI and MACD technical indicators display below-neutral values, confirming the current bearish market sentiment. Stoch values moved away from extreme lows, suggesting the trend may reverse.
If ETH can’t maintain $2,800 to $3,000 support, it will break bullish assumptions and may trigger a 25% value decline.
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