Ethereum’s February Fiasco: A Comedy of Crypto Errors! 😂

by

Ah, Ethereum! The second largest cryptocurrency, and yet, it seems to be having a bit of a February to forget. With prices plummeting like a lead balloon, we find ourselves staring at a rather dismal 23% drop this month. Historically, February has been a month of jubilation for our dear ETH, with only a single red month back in 2018. But this year? Well, it appears to be the exception that proves the rule, as ETH grapples with market pressures that would make even the stoutest heart quail. 🥴

As I pen this missive, ETH has taken a nosedive of 12% in the last 24 hours, now languishing at a rather sad $2387. It seems to be mirroring a broader market sell-off, with Bitcoin also taking a tumble to $87,611, its lowest since the days of yore—November 15, to be precise. Other cryptocurrencies are joining the pity party, with Ethereum, XRP, and Solana all down in the dumps. What a time to be alive! 😱

$ETH could be heading for its worst February if it drops below $2400. 📉

Historically, February has been bullish for ETH, with only one red month in 2018. But with a 23% drop already, this could be another exception.

Macroeconomic uncertainty, including new tariffs from the…

— Spot On Chain (@spotonchain) February 25, 2025

According to the oracle known as CoinGlass, a staggering $1.34 billion in bullish crypto positions were liquidated on derivatives markets in the last 24 hours. If ETH dares to dip below $2,400, we might just witness a plunge deeper than a diving board at a swimming gala, leading to its worst February on record. The suspense is palpable! 🎭

What the Crystal Ball Says

Our friend Ali, a crypto analyst of some repute, has declared that the most critical support level for Ethereum now sits at a rather precarious $2,300. One can only hope it doesn’t take a tumble off that cliff!

In a recent analysis by the wise sages at Glassnode, it appears that the ETH Cost Basis Distribution (CBD) is showing signs of life, albeit a rather sluggish one. Investors seem to be accumulating ETH as it descends, like a flock of seagulls swooping down on a dropped chip. Accumulation zones indicate key support at $2,632, with a whopping 786,660 ETH held at this level, while resistance lurks at $3,149, where 1.22 million ETH are being held. It’s a veritable tug-of-war! ⚖️

In a recent tweet, the illustrious CryptoQuant CEO, Ki Young Ju, has shared some rather optimistic musings about ETH. First, he assures us that there’s no significant sell pressure post-Bybit hack, as on-chain and market data remain as neutral as a referee at a cricket match. Exchange selling takes time, and OTC offloads are about as effective on price as a chocolate teapot.

Secondly, Ethereum holds a commanding 56% of the stablecoin market cap, and there’s a chance that firms may start using ETH-based stablecoins and smart contracts more in 2025, thanks to a regulatory outlook that’s looking rather sunny. ☀️

With the Ethereum spot ETF already in place, our dear CryptoQuant CEO predicts regulatory tailwinds that could trigger a “Large Cap ETF altseason,” giving ETH a much-needed boost this year. Fingers crossed! 🤞

Lastly, it appears that the whales are on a shopping spree; wallet balances of 10,000-100,000 ETH are up 24% over the past year, primarily from wallets under 1,000 ETH. The current price is nearing the cost basis of these accumulating addresses, which is about as exciting as watching paint dry, but in the crypto world, it’s practically a blockbuster! 🎬

Read More

2025-02-25 17:20