With Ethereum recent decline finding bullish support at $2,600, is a reversal rally toward $3,000 in ETH prices possible this week?
As bulls are preparing to lift off Bitcoin price from its critical support level of $95,000, Ethereum is holding its ground at $2,600. With multiple lower price rejection candles over the weekend, the breakdown rally in Ethereum is finding minor bullish support.
While the lower price rejection hints at a potential comeback for Ethereum, strong overhead bearish signals indicate significant resistance. Amid these dynamics, could an altcoin season push Ethereum’s price back to the $4,000 mark? Let’s explore.
Ethereum Price Analysis: Can Bulls Reclaim Momentum?
On the daily chart, Ethereum’s price continues to decline after its breakout rally. This drop accounts for a 21% decrease in Ethereum’s market value over the past 10 days, reducing its price from $3,331 to $2,635.
Despite this sharp decline, bullish support is helping Ethereum hold above the $2,600 mark. With lower price rejections in its daily candles, Ethereum’s price trend hints at a possible comeback.
Supporting the possibility of a bullish rally, the MACD and signal lines are narrowing the bearish gap. This hints at a potential crossover as the intensity of bearish histograms declines.
Thus, the momentum indicator points to a possible bullish reversal for Ethereum. However, the up-and-down volume shows a constant struggle between bulls and bears.
Ethereum ETF Inflows and Institutional Demand
Amid price declines, Ethereum ETFs registered inflows of $420.2 million between February 3 and February 7. On February 7, U.S. spot Ethereum ETFs recorded a net-zero inflow.
However, daily inflows have been strong, with six consecutive days of positive inflows into Ethereum ETFs. Despite Ethereum’s declining market price, the rising institutional support indicates a likely upward bounce in ETH prices.
This assumption is based on the expectation that the market price will align with the rising demand.
Ethereum Whale Holdings: A Major Sell-Off?
Alongside institutional support, the balance of Ethereum held by large investors has shifted significantly. According to IntoTheBlock, since February, the balance of Ethereum held has dropped from $455.79 billion to $371.91 billion.
Ethereum Balance by Holding
Among these changes, Ethereum holdings of over $10 million dropped from $366.43 billion to $296.26 billion—a 19.14% decrease in just nine days.
Additionally, investors holding between $1 million and $10 million worth of Ethereum have reduced their holdings from $34.27 billion to $28.21 billion. This shift in top investor holdings adds to the bearish pressure on Ethereum’s price.
Ethereum Price Targets
With technical signals showing opposing trends, price action analysis remains straightforward. Given the lower price rejections in the last three intraday candles, a bounceback in Ethereum’s price is likely.
The immediate price target for Ethereum is $2,746, followed by $3,957. On the downside, crucial support remains near the $2,400 psychological level, with further support at $2,118 following the recent market pullback.
