Ethereum’s Dramatic Dance – Will the Bears Steal the Show?

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Ah, Ethereum, our dear beleaguered friend, took a nosedive to a rather disheartening low of $2,156 on the delightful Monday of February 2nd. One can only imagine the collective sighs from the crypto enthusiasts, as AMBCrypto, ever the harbinger of doom, declared that the short-term momentum was as bleak as a rainy day in London.

But fear not, dear traders! The higher timeframe price charts are whispering sweet nothings into our ears, suggesting that perhaps, just perhaps, this is an opportune moment for a cheeky purchase. How delightful!

Ethereum finds itself within a bullish swing structure, harking back to the mid-2025 rally. A glorious time, indeed! In recent hours, it nearly flirted with the 78.6% retracement level at $2,147-can you feel the tension? The long-term bullish bias still clings on like a persistent suitor.

Institutions, those gallant knights of finance, such as Bitmine [BMNR], have been on a buying spree, even as they wallow in a rather impressive $6.38 billion unrealized loss-38.91% drawdown, if you’re keeping score at home. Oh, the drama!

Just last week, Bitmine threw caution to the wind and acquired another 40,000 ETH, worth nearly $90 million. They’re all set to “buy the dip” in what promises to be a rather tumultuous 2026, according to the ever-optimistic Tom Lee.

A Quick Look at the Short-Term ETH Price Performance

While the long-term outlook may have us frolicking in fields of daisies, the lower timeframe bias remains firmly entrenched in bearish territory for swing traders as we pen this missive.

If a price bounce towards $2.7k occurs, one might expect the next opportunity for a swift sell-off. Such audacity is expected, especially since the H4 RSI made a daring bullish divergence within the oversold realm. Marked in orange for your viewing pleasure, this divergence led to a charming 6.58% bounce to $2,395 in a mere 12 hours.

One cannot ignore the possibility that the bounce may soar towards $2,600 in the coming days. How thrilling!

Traders’ Call to Action – Patience, My Dear!

A bounce is indeed on the horizon, but placing bets now would be akin to walking a tightrope in stilettos-precarious, at best.

Scalp traders might wish to employ the H4 structure to inform their shorter-term biases, should they be tempted by longs. For the rest of us, ETH finds itself neither in a prime position for a short nor showing any inclination for a tantalizing bounce.

The Liquidation Heatmap, our trusty guide, indicates that a bounce above $2,400 would be the first cue for our dear short sellers to awaken from their slumber.

A liquidity sweep at $2,450 could be followed by an exhilarating plunge in price. Alternatively, do keep your monocles handy; a bounce towards the enchanting $2,700-$2,800 range cannot be dismissed. This zone, my friends, is both a liquidity cluster and a pivotal Fibonacci retracement area. Thus, patience is indeed a virtue-let ETH show its cards before you embark on a short adventure.

Should we witness a rally beyond the local high of $3,041, the H4 bias will undoubtedly don its bullish attire. How positively riveting!

Final Thoughts

  • Ethereum possesses the potential for a most dramatic rebound after the intense bearishness of recent months-one must always hope for a comeback!
  • However, do temper your expectations; that rebound is unlikely to materialize in the immediate future, leaving traders comfortably nestled in their bearish sentiments this week.

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2026-02-03 16:12