Ethereum Drops Below $2,200 Amid Bearish Signals
The Most Important Points at a Glance
Ethereum (ETH) has fallen below the $2,200 mark. Despite a 22% price decline in recent days, there has been increased activity among large investors, known as whales. These investors accumulated around 110,000 ETH within 72 hours. Market developments remain uncertain, as both bullish and bearish signals are present.
Eric Trump’s Endorsement and the Subsequent Price Decline
On February 4, 2025, Eric Trump expressed his support for Ethereum on the platform X (formerly Twitter) and urged his followers to buy ETH. This briefly led to a price increase, but the effect quickly faded. Since then, the price has dropped by 22%.
Several factors contributed to this decline:
– A hack of the crypto exchange Bybit on February 25, causing $1.5 billion in damages, created uncertainty.
– The euphoria following Donald Trump’s election victory subsided as the anticipated pro-crypto regulations failed to materialize.
– Global economic uncertainties further weighed on the market.
Whale Activity: A Sign of Recovery or Tactical Moves?
Despite the price decline, whale activity has increased. Within 72 hours, large investors purchased 110,000 ETH. Historically, such phases have often been followed by recoveries, though not always.
– At the end of December 2024, similar buying behavior coincided with an ETH peak.
– In mid-January 2025, there was also increased buying activity, which led to a brief recovery.
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If Ethereum maintains the price range of $2,100 to $2,135, this could be a bullish signal. However, a sustained break below this range could indicate a deeper correction.
Technical Indicators: Bearish Signals Dominate
Several technical indicators suggest ongoing market weakness:
– The Relative Strength Index (RSI) stands at 38.90, indicating an oversold situation.
– The Moving Average Convergence Divergence (MACD) shows a bearish crossover, signaling further downward pressure.
– The 50-day Simple Moving Average (SMA) is at $2,929—significantly above the current price of $2,109.
If ETH reclaims the $2,200 to $2,300 range, this could signal a short-term recovery. Otherwise, the next major support zone lies between $1,900 and $2,000.
Our Assessment
The current market situation remains uncertain. While whales are accumulating ETH, technical indicators continue to show a bearish trend. Investors should act cautiously and wait for a clear trend reversal before taking larger positions. A sustained break below $2,100 could lead to further losses.
Sources
– Santiment
– TradingView
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $2,229.32 |
| 24h % | -3.94 % |
| 7d % | -16.74 % |
| 30d % | -28.53 % |
| 60d % | -34.19 % |
| 1y % | -33.35 % |
| Market Cap | $268,880,557,639.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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