Ethereum’s Price Dilemma: To Buy or Not to Buy? 🤔💸

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Ah, the crypto cosmos, where fortunes rise and fall like the tides of a tempestuous sea! On that fateful day of February 3, the mighty Bitcoin, once soaring at a staggering $102.5K, plummeted to a mere $91.2K, dragging Ethereum down with it like a shipwrecked sailor clinging to a sinking vessel. In a single day, Ethereum, that ethereal creature, shed nearly 26% of its value, leaving investors gasping for breath and clutching their wallets. Yet, amidst the chaos, a flicker of hope emerged as Ethereum staged a valiant recovery, though the specter of its February 3 lows loomed ominously over the market. The on-chain metrics whisper sweet nothings of bullish prospects, while the technicals, like a grumpy old man, warn of impending doom.

Will Ethereum Price Revisit $2,000? 

From the lofty heights of technical analysis, Ethereum’s price dances a macabre waltz of lower lows and lower highs, casting its gaze upon the $2,497 mark, the midpoint of that fateful wick from February 3. Thus, the first key support lies at $2,500, a place where weary investors might find solace and perhaps a glimmer of hope for a bounce back. But beware! The short-term outlook remains as bleak as a winter’s night until ETH can reclaim the January 31 swing high of $3,473 and create a higher high. Until that glorious day dawns, investors must brace themselves for the bearish storm.

Assuming Bitcoin doesn’t lose its bullish charm, the ideal buy zone beckons between $2,000 and $2,100.  The equal lows at $2,100 and the bearish whispers suggest that the psychological $2,000 might just be a hop, skip, and a jump away, especially if the $2,500 support crumbles like a stale cookie.

Key overhead resistance levels include the previous week’s and month’s VWAPs at $3,119 and $3,306, respectively. Overcoming these hurdles would allow Ethereum to ascend to a higher high above the January 31 swing high of $3,473.  Such a feat would flip the outlook bullish and trigger a sweep of the equal highs at $4,093. In this whimsical scenario, ETH’s value could inflate like a balloon at a child’s birthday party, revisiting the all-time high (ATH) of $4,868.

In conclusion, the Ethereum price prediction reveals a short-term bearish bias with a target of $2,000. However, should the winds shift and $3,473 be reclaimed, the bias would do a somersault, triggering a rally to $4,000 or beyond. Regardless of which path the fickle market chooses, investors must keep their eyes peeled for the buy zone nestled between $2,100 and $2,000, as on-chain metrics flash multiple buy signals like neon lights in a dark alley.

Whales Accumulate Close to 1 Million ETH in 2025

Behold the first on-chain metric that bellows bullishness: the Supply Distribution metric from Santiment, which tracks wallets based on balance. This indicator reveals that wallets holding 1K to 10K ETH have gobbled up 950,000 ETH since January 1, 2025. Clearly, these whales have a taste for ETH, savoring its value like a fine wine. While this bullish development is as sweet as honey, investors must remember that these holders are in it for the long haul, willing to wait for years before cashing in their chips. Nevertheless, this is a bullish sign for Ethereum, hinting that prices could bounce back soon.

Moreover, Ethereum has received an endorsement from none other than Eric Trump, who boldly declared:

“In my opinion, it’s a great time to add $ETH.”

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2025-02-07 10:10