Key Points
Ethereum’s performance against Bitcoin in 2024 has been less than stellar. The cryptocurrency has been in a technical bear market, decreasing by 22% from its high points of the year.
The price of Ethereum (ETH) has now fallen to $3,200. This is close to its lowest level since December 2024.
The Ethereum Foundation’s continued sale of its large Ethereum holdings is one reason for the decline. Another reason is the loss of market share to other blockchain networks like Tron (TRX) and Solana (SOL).
Despite the downward trend, there are signs that Ethereum could be on the verge of a bullish breakout. There is even speculation that it could reach $5,000 in the coming weeks.
Ethereum’s Historical Performance
Historically, Ethereum’s price has done well in February. From 2019 onwards, Ethereum has consistently posted positive returns in February.
Since 2017, the average performance of Ethereum in February has been a 17% increase. While past trends don’t guarantee future results, there is growing optimism that Ethereum could see gains this February.
Data from CoinGlass shows a recent decrease in Ethereum balances on centralized exchanges. The total volume fell to 16.04 million, down from the month’s high of 16.09 million.
A decrease in exchange balances could mean that holders are moving their Ethereum to self-custody wallets. This could be a bullish signal, indicating reduced sell pressure.
There is also data showing that Ethereum whales, or large-scale investors, have continued to accumulate the coin. 13 whales saw Monday’s crash as an opportunity to accumulate more Ethereum.
One notable buyer is Donald Trump’s World Liberty Finance. They now hold Ethereum worth almost $200 million.
Ethereum Price Analysis
The weekly chart shows a possible inverse head and shoulders pattern for Ethereum, with the neckline at $4,085. This pattern is often seen as a bullish reversal signal.
If Ethereum breaks above this neckline, it could signal further gains.
Ethereum is also in the fourth part of the Elliot Wave pattern. The fifth phase, which often indicates a bullish trend, typically follows this.
The 50-week and 100-week moving averages also support the coin. If Ethereum breaks above the inverse head and shoulders neckline at $4,085, it could rally further. Some even speculate that it could reach the psychological level of $5,000.