Ethereum’s Dreadful February: A Comedy of Errors! 🎭

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Oh dear, it seems Ethereum is having a rather ghastly February, the kind that would make even the most stoic of investors clutch their pearls! Instead of fleeing the scene like a bad actor, our dear investors are scooping up ETH at these bargain basement prices. Will our gallant ETH manage to hold the fort at $2,300, or shall we see it gallivanting towards $3,000? Only time will tell! ⏳

Ethereum is Down 11%, Price Trades at $2,394

Today, Ethereum finds itself trading at a rather dismal $2,394 after a dramatic 11% plunge in just 24 hours. This unfortunate drop mirrors a grand spectacle across the crypto stage, where the total market cap has taken a bow, falling by a staggering 8% to below $3 trillion. Liquidations, my dear, have topped $1.5 billion, with Ethereum itself witnessing a rather theatrical $300 million in liquidations, most of which were long positions. 🎭

And let us not forget the delightful chaos following the Bybit hack! The hackers, those rascals, are laundering the stolen ETH on exchanges, adding a touch of drama to an already volatile week. One can only hope for a swift recovery, but alas, the plot thickens! 🎩

Ethereum Price Analysis as Cost Basis Drops

Our dear Ethereum is under the weight of bearish stress, delaying the much-anticipated altcoin season. Yet, in a twist worthy of a Coward play, ETH is defying the usual panic selling trend. Glassnode’s Cost Basis Distribution (CBD) metric reveals that investors are still keen to buy ETH at these delightful discounts! 💸

The CBD metric, a rather clever tool, shows the price at which new investors are entering the fray. As the cost basis drops, it indicates a willingness to buy Ethereum at these charmingly low prices.

One of the main accumulation zones where traders have been buying up 768K ETH as the price dropped is at $2,632. Earlier this month, as ETH fell below $3,300, traders also snatched up 1.22M ETH at $3,149. If this downtrend continues, we might just witness the beginning of another accumulation phase as traders look to buy the dip. How positively thrilling! 🎉

As the cost basis drops, there’s a high likelihood that Ethereum will defend its key support levels. But, dear friends, this is contingent on whether traders stick to their past accumulation trends. Fingers crossed! 🤞

Key Support Levels to Watch

Ethereum is on the brink of recording its worst February performance, defying historical trends that have always been rather kind to ETH. As the price retraces, one must keep a keen eye on the critical support level of $2,300. 📉

As our astute trader Ali Charts has pointed out, Ethereum has been trading above this support since February of last year. Should it breach this level, we could see a rather dramatic downtrend towards the psychological price of $2,000. Oh, the suspense! 😱

As mentioned, the drop in cost basis supports the theory that the price will hold above $2,300. Additionally, if long liquidations cool off after nearly $300 million in forced selling within 24 hours, we might just have room for a recovery. How delightful! 🌈

Another crucial price level to watch is the lower trendline of a falling wedge pattern on its daily chart. This pattern often signals a reversal from a bearish trend. If ETH bounces from the lower trendline and flips resistance at the upper trendline with strong buy volumes, we could see a rally past $3,200. But, if support at this lower trendline fails to hold, we may be in for further downside. The drama continues! 🎭

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2025-02-25 14:17