 ▲ Ethereum (ETH) / ChatGPT-generated image |
As Ethereum (ETH) breaks below a key support level and appears to be passing the peak of its price correction, a hidden bullish signal emerging beneath the charts is signaling the opening act of a potentially historic rebound.
According to cryptocurrency news outlet The Crypto Basic on February 10 (local time), analyst Mark Brennan noted that Ethereum is under downward pressure after failing to secure support between $2,015 and $2,100. Ethereum is currently trading around $2,011, down 3.12% over the past 24 hours and posting a steep 34.75% decline over the last 30 days. With the market’s long-to-short ratio still holding above 2.3, attention is focused on whether this drop represents a final capitulation or a prelude to further downside.
From a technical analysis perspective, Ethereum is precariously holding the psychologically important $2,000 level, but this alone has not been sufficient to reverse the broader downtrend. With the price remaining below the Bollinger Band midline and the 20-day moving average at $2,488, any short-term rebound attempts are meeting strong resistance. If the $2,000 support level breaks, the next major downside support opens near $1,684, the lower Bollinger Band, requiring heightened caution from investors. Rising standard deviation to 401.77, indicating extreme price volatility, is another factor adding to market anxiety.
On the other hand, some analysts maintain long-term optimism, identifying potential breakout signals amid the current harsh decline. Analyst Javon Marks pointed to a hidden bullish divergence on Ethereum’s chart, where prices are forming higher lows while indicators make lower lows. If this technical setup plays out, Marks forecasts a powerful recovery rally that could see Ethereum surge approximately 148.6% from current levels, climbing toward the $5,000 range.
A decisive turning point for Ethereum’s near-term direction lies in whether it can reclaim the 20-day moving average at $2,488. Spot trading volume of $4.79 billion over 24 hours and futures volume totaling $58 billion serve as key gauges of recovering market liquidity. To generate upward momentum toward the upper resistance level at $3,291, a volume-backed breakout will be necessary, while shifts in liquidity across Bitcoin (BTC) and the XRP Ledger are expected to act as important external variables.
Ethereum currently appears to be consolidating energy for a new upward cycle after enduring a rigorous market test. If it can defend the $2,000 support level and complete the technical divergence, there is a strong possibility that a V-shaped rebound similar to those seen after past sharp declines could materialize once again. Rather than being swayed by short-term volatility, investors are advised to closely monitor stabilization around key moving averages and shifts in institutional capital flows when formulating their strategies. Market attention remains firmly fixed on real-time on-chain data to see whether Ethereum can regain leadership in the broader market.
Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for any investment losses based on the content. The information provided should be interpreted solely for informational purposes.