Will the growing fear in the market drop Ethereum back to $2,150? or is the uptrend to $4,100 inevitable amid rising institutional support?
As Bitcoin retraces back to the $97,000 mark, Ethereum is back to retest the bullish dominance at $2,700. Amid the increased market volatility, the Fear and Greed Index has shifted into the fear zone, now sitting at 35.
Currently, Ethereum is down 4.17% over the past 24 hours, extending its 7-day decline to 16.49%. With bulls struggling to maintain dominance above the $2,700 mark, ETH price analysis points to a possible rally following a triangle breakout pattern.
Ethereum Price Trend: Triangle Holds the Key
The daily chart shows that Ethereum’s price trend is strongly influenced by the Asian trend line, which currently dominates the market landscape. Under this influence, Ethereum has fallen from its recent swing high of $4,105 to the current price of $2,704.
This represents a significant 34% decline in Ethereum’s value over the past two months. However, with recent lower price rejections, Ethereum continues to hold above its local support trend line.
As two trend lines converge, Ethereum is now trapped within a triangle pattern. The price is testing the bottom support level, a crucial crossroads that will determine its future price direction.
While the ongoing correction has pushed Ethereum toward the lower Bollinger Band, the RSI levels remain above the oversold threshold. However, the RSI fails to show any clear bullish signals through divergence.
Institutional Demand for ETH: BlackRock Leads the Accumulation
Despite the broader bearish trend in the crypto market, institutional demand for Ethereum remains strong. On February 6, while 8 out of 9 Ethereum ETFs reported net-zero flow, BlackRock was the only buyer.
BlackRock acquired $10.65 million worth of ETH on Thursday, bringing its total inflow to $4.42 billion. This cumulative figure makes it the most prominent ETF holding Ethereum.
ETH ETFs
Investor Sentiment: Confidence Remains Strong in Ethereum ETF
Continuing with the theme of institutional support, Michael van de Poppe highlighted in a recent X post that investors have purchased over $500 million worth of Ethereum through Ethereum ETFs over the past week.
In his statement, he emphasized, “They are not buying because they assume the bull market is over.”
With rising inflows over the past few weeks, the institutional market remains optimistic about Ethereum’s potential in the crypto bull run.
As institutional support increases, Ethereum’s market price will likely eventually reflect this demand.
Whale Activity: Shift in Holdings During Market Crash
Amid the strong support from institutions, Ethereum’s whale holdings have undergone significant changes. According to IntoTheBlock’s balance-by-holdings indicator, whale sentiment shifted during the recent market downturn.
Ethereum holdings worth over $10 million dropped from $379.36 billion to $312.93 billion. This represents a 17.51% decline over the past week and a notable rebound from the $285.81 billion low reached during the market crash.
Similarly, holdings in the $1 million to $10 million range decreased from $35.38 billion to $29.51 billion. Surprisingly, this price band saw little offloading during the crash, indicating that investors holding between $1 million and $10 million in Ethereum are showing stronger hands.
Ethereum Price Prediction: Key Levels to Watch
As demand for Ethereum gradually returns, short-term selling sentiment is expected to fade. If this occurs, the Fibonacci levels suggest a potential price target of $4,165 in the event of a triangle breakout.
However, if the local support trend line fails to hold, Ethereum could experience a significant drop, potentially testing the recent low around $2,150. This would also put immense bearish pressure on the psychological $2,000 support level.
