Ethereum Price Holds at $2,700 Amid Bullish Indicators and Institutional Accumulation
Bitcoin has fallen below $97,000, while Ethereum is struggling to hold support at $2,700, currently trading at $2,720 with a 24-hour decline of 4.26%. Bitcoin’s dominance is at 60.86%, and Ethereum's has decreased to 10.36%.
Ethereum Weekly Chart Analysis
- The current weekly candle indicates a bullish reversal with higher lows from a key support trendline.
- A broadening wedge pattern suggests an initial target of $5,338, aligning with the 100% Fibonacci level.
- Further targets are set at $7,321 and $8,546 based on Fibonacci extensions.
Historical Ethereum Trends
- Three long-tailed weekly candles near $2,000 hint at a potential price surge.
- Historically, such patterns have led to price increases of 90-100% within 8-12 weeks.
- A breakout rally may push Ethereum past $4,000, potentially reaching $8,000.
Daily Timeframe Analysis
- A triangle pattern in the daily timeframe could signal a breakout similar to the 2021 bull run.
- Recent lower price rejections may indicate a bullish comeback.
Institutional Accumulation
- BlackRock leads institutional purchases with over $500 million in Ethereum through ETFs.
- On February 6, US Ethereum spot ETFs saw a net inflow of $10.65 million, marking six days of positive inflows.
Bearish Warning
- The MVRV momentum oscillator has turned negative, indicating short-term risks despite the broader bullish trend.
- This indicator previously preceded a downturn in August 2024.
Conclusion
Ethereum is at a critical juncture, with strong bullish setups across various timeframes. The ability to maintain a price above $2,700 will be crucial in determining if it can rally beyond $3,000 or face further corrections.