Ethereum has been showing strong bullish cues despite recent selling pressure. The cryptocurrency has remained resilient, maintaining its recovery momentum even as investors moved significant amounts of ETH onto exchanges.
Market conditions and investor behavior suggest that the Ethereum price may be poised for an upward breakout in February.
Ethereum Investors Are Skeptical
The Ethereum exchange net position change indicates that 122,000 ETH, worth approximately $390 million, has flowed into exchanges. This surge in supply suggests that investors took advantage of Ethereum’s price recovery above $3,000 on Tuesday to lock in profits, reflecting cautious market sentiment.
Despite this selling activity, Ethereum’s price has not experienced a sharp decline. This suggests that investors are not anticipating a prolonged downtrend but instead acted to secure short-term gains. The market remains in a consolidation phase, with ETH investors watching for signs of renewed buying interest.
Ethereum Exchange Net Position Change. Source: Glassnode
Ethereum’s macro momentum remains favorable for a potential recovery. The MVRV Score is currently below 1.0, indicating that ETH is still undervalued compared to its historical market cycles. While the indicator is not near the green zone, signaling a market bottom, it is also far from the red zone, indicating a market top.
This positioning suggests that Ethereum has sufficient room for a sustained recovery without the immediate risk of a price reversal. As long as broader market conditions remain supportive, ETH could continue its upward trajectory and challenge key resistance levels in the coming weeks.
Ethereum MVRV Z-Score. Source: Glassnode
ETH Price Prediction: Finding A Break
Ethereum has been trading within a falling wedge pattern throughout January. A breakout from this formation could push the altcoin king past the critical $3,303 resistance level. Breaking above this barrier would confirm a bullish trend reversal and set ETH on a stronger recovery path.
The next target remains $3,530, but sustained bullish momentum will be necessary for Ethereum to reach this level. Market-wide optimism and increased buying activity would be key to maintaining upward pressure throughout February. Investor confidence and macroeconomic conditions will likely play a crucial role in ETH’s trajectory.
Ethereum Price Analysis. Source: TradingView
However, if selling pressure continues to counter bullish sentiment, Ethereum may struggle to break past $3,303. This could result in continued consolidation between $3,303 and $3,131. A drop below $3,131 could lead ETH to retest $3,028, invalidating the bullish outlook and delaying further price recovery.
