- Ethereum dropped 5% in 24 hours alongside Bitcoin falling below $99K, driven by U.S. tariff wars and BTC dominance retesting key levels.
- ETH has reached crucial support zone between $3,000-$3,100 after forming a descending triangle pattern since December 16 high of $4,109.
- Historically, Ethereum has performed well in February with a 42% surge last year, suggesting potential for recovery despite current weakness.
- The broader altcoin market recovery depends on BTC dominance facing rejection at its rising wedge breakout level.
Date: February 2, 2025 | 12:09 PM GMT
The cryptocurrency market is facing a significant downward pressure in the last 24 hours, with Bitcoin (BTC) dropping below $99K and Ethereum (ETH) sliding by 5%. This decline is likely tied to the ongoing U.S. tariff wars and BTC dominance retesting a key breakout level, which has led to an extended correction in major altcoins.
Ethereum (ETH) Hits Crucial Support Zone
Ethereum (ETH) has been struggling since reaching its December 16 high of $4,109, forming a descending triangle pattern on the daily timeframe. With continuous bearish pressure, ETH has now reached its crucial support zone between $3,000 and $3,100, currently trading at $3,065.
This support zone has previously acted as a strong rebound level, with the 200-SMA offering additional support. If ETH manages to hold this zone, a bounce could push it back toward the upper resistance of the descending triangle, which might help stabilize the broader altcoin market.
However, if ETH fails to hold above $3,000 and breaks below the 200-SMA, the next key support level lies at $2,750.
Ethereum (ETH) Feb Outlook
Despite the bearish start to February, Ethereum’s historical performance during this month has been largely bullish. Last year, ETH surged by an impressive 42% in February, demonstrating its potential for strong rebounds even after periods of weakness.
If history repeats itself, a recovery from the current support zone could lead to a significant upside move in the coming weeks.
What’s Next?
Ethereum’s next move, along with that of the broader altcoin market, will largely depend on BTC dominance. Currently, BTC dominance is retesting its rising wedge breakout, which could be a decisive factor in the coming hours.
If BTC dominance faces rejection and resumes its downtrend, it could shift momentum back toward altcoins, potentially triggering a recovery for Ethereum and other major tokens.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.
The opinions and market insights shared on CoinsProbe represent the views of individual authors based on prevailing market conditions at the time of publication. Cryptocurrency investments carry significant risk and volatility. Readers are encouraged to conduct their own research and seek professional financial advice before making investment decisions. CoinsProbe and its contributors do not accept responsibility for financial losses or decisions made based on published content.
CoinsProbe may publish sponsored articles, affiliate links, or promotional collaborations. All sponsored material is clearly labeled to maintain transparency with our audience. Our editorial decisions remain fully independent, and advertising partnerships do not influence reviews, rankings, or published opinions.
Since 2023, CoinsProbe has delivered reliable insights on cryptocurrency, blockchain, and digital assets. Our content is created by experienced researchers and analysts who follow strict editorial standards focused on accuracy, transparency, and credibility. Every article is carefully reviewed and verified using trusted sources and current market data. We provide unbiased analysis and timely updates covering everything from emerging crypto projects to major industry developments.
