- ETH must test a key support level at $2,150 to move up.
- Market indicators suggested the possibility of a price downtrend.
Ethereum [ETH] witnessed a price correction a few days ago as it slipped under the $2,300 mark. However, it continued holding on to a key support zone at press time.
A drop below this level could be disastrous, but things can still turn in investors’ favor, and here’s how.
What is Ethereum up to?
Ethereum’s price reached the $2,380 mark on the 31st of January. However, soon after that, it witnessed a correction.
According to CoinMarketCap, ETH’s price declined marginally over the last 24 hours. At the time of writing, it was trading at $2,292.49 with a market capitalization of over $275 billion.
Inasmuch, on the 4th of February, analyst Michael van de Poppe posted a tweet highlighting a key support zone for ETH.
#Ethereum is holding up to the crucial support level at $2,150.
As long as that holds and the grind upwards continues, I still think we’ll see $3,000+ in Q2. pic.twitter.com/kknj6y3dnK
— Michaël van de Poppe (@CryptoMichNL) February 4, 2024
van de Poppe noted that ETH was holding up to the crucial support level of $2,150. A drop below that level could push the token’s price further down.
On the other hand, if ETH holds its ground, Ethereum could rise above $3,000 in Q2 2024.
However, at press time, things did not look good for ETH. AMBCrypto’s look at Santiment’s data revealed that both ETH’s Coinbase and Korea premium were in the red.
This meant that selling sentiment among US and Korean investors was dominant in the market at press time.
Selling sentiment at large also looked dominant in the market at the time of the report.
AMBCrypto had earlier reported that ETH’s exchange reserve chart showed a substantial decline, bringing the supply down to 10.3 million by the 28th of January.
This is a typical bearish signal, as it reflects less confidence among investors in an asset.
Going ahead in February
To understand which way ETH is headed in February, AMBCrypto checked its daily chart. As per the MACD, the bulls and the bears were in a tussle to gain an advantage over each other.
The Relative Strength Index (RSI) took a sideways path near the neutral mark, hinting at a few more slow-moving days.
The Chaikin Money Flow (CMF) looked bearish as it registered a downtick. This indicated that there were high chances of ETH reaching its $2,150 support level in coming days.
Read Ethereum’s [ETH] Price Prediction 2024-25
Further, AMBCrypto’s analysis of Hyblock Capital’s data revealed that before testing its $2,150 support level, ETH might face another strong support near the $2,200 mark.
For the uninitiated, when the token’s price reached this point back in November 2023, it moved northward.