As Ethereum marks another failed attempt at a bullish recovery, will the decline continue below $2,665?
With a minor recovery in the crypto market last night, Bitcoin reclaimed $100,000, and Ethereum managed to overcome the massive downturn yesterday. However, the bulls failed to sustain the recovery run as Bitcoin dropped back below the $100,000 mark.
Amid increasing volatility in the crypto market, Ethereum continues its downtrend with an intraday pullback, falling below the $2,700 mark. Will Ethereum close below the $2,665 support level? Let’s explore.
Ethereum Price Analysis: Key Levels to Watch
In the daily chart, the Ethereum price trend reveals a strong bearish candle closing under the $3,000 psychological support. This was followed by a long-tailed hammer candle reflecting the bullish fightback after creating a 24-hour low at $2,150.
However, the intraday pullback drops the Ethereum price back under $2,700. Currently, Ethereum creates another bearish engulfing candle posing a threat over the 23.6% Fibonacci support level at $2,665.
With the bearish engulfing candle, Ethereum continues to stretch the lower Bollinger band, prolonging the bearish trend. Furthermore, the up and down volume reveals a significant surge in bearish volumes.
The downfall is expected to continue as the broader market remains volatile and the trade war between the U.S. and the world continues.
Trump Family’s Bold Move: Buying the Ethereum Dip
Amid the increasing volatility and the crypto market crash, Donald Trump’s World Liberty Financial has made a profound repositioning. The fund has moved $307.41 million in eight different assets to Coinbase.
This comes as part of treasury management and business operations. After the repositioning, the fund has unstaked 19,423 Lido Staked Ethereum to Ethereum and continued to purchase 1,826 ETH worth nearly $505 million.
Currently, World Liberty Financial holds $96.62 million in various assets across nine different wallets. Most of the project’s investment remains in ETH, worth nearly $212.6 million, followed by Wrapped Bitcoin, the second biggest asset worth $52.7 million.
Meanwhile, Eric Trump, the Executive Vice President of the Trump Organization, has extended his bullish opinion on Ethereum. In his recent X post, Eric expressed that the dip offers the best opportunity to buy ETH.
“It is a great time to add Ethereum. You can thank me later,” he said. This suggests the Trump family may be buying the dip in Ethereum.
In my opinion, its a great time to add $ETH. You can thank me later.
— Eric Trump (@EricTrump) February 3, 2025
Renewed Institutional Interest with $23M in ETF Inflows
Along with support from Donald Trump’s family, institutional interest in Ethereum has resurfaced. On February 3, the Ethereum ETFs recorded a net inflow of $83.6 million.
Fidelity purchased $49.7 million worth of ETH, becoming the biggest purchaser for the day. Grayscale Mini Ethereum Trust recorded an inflow of $15.9 million, and Grayscale Ethereum ETF acquired $12.8 million worth of Ethereum.
Ethereum Key Price Targets
Despite the growing support from the Trump family and ETFs, Ethereum’s price analysis reveals growing bearish pressure. If Ethereum holds above the 23.6% Fibonacci level at $2,665, a potential reversal could retest the $3,000 psychological mark.
However, a failure to do so will likely retest the $2,224 support level.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
