Ethereum flashes a bounce signal – But THIS level keeps bears in the game
Ethereum fell to a low of $2,156 on Monday, the 2nd of February. AMBCrypto had reported that the short-term momentum was strongly bearish, as was the market-wide sentiment throughout the crypto business.
On the similar time, the upper timeframe value charts additionally steered that it was shopping for alternative.
Ethereum was buying and selling inside a weekly bullish swing construction established through the mid-2025 rally.
In latest hours, it almost retested the 78.6% retracement degree at $2,147. Due to this fact, the upper timeframe bullish bias was nonetheless alive.
Establishments similar to Bitmine [BMNR] have additionally relentlessly purchased Ethereum [ETH]. The corporate was sitting on a $6.38 billion unrealized loss, a 38.91% drawdown on its investments.
AMBCrypto famous that simply final week, Bitmine added one other 40,000 ETH, value almost $90 million, to its treasury. They have been ready to “purchase the dip” in a tough 2026, asserted Tom Lee.
Assessing the short-term ETH value motion
Supply: ETH/USDT on TradingView
Whereas the long-term bias has purpose to be bullish, the decrease timeframe bias was firmly bearish for swing merchants as of press time.
A value bounce towards $2.7k would possible yield the subsequent promoting alternative.
Such a bounce is anticipated as a result of the H4 RSI made a bullish divergence throughout the oversold territory. Marked in orange, this divergence was adopted by a 6.58% value bounce to $2,395 inside 12 hours.
It’s potential that the bounce would go towards $2,600 within the coming days.
Merchants’ name to motion – Wait…!
A bounce is feasible, however it’s too dangerous to wager on.
Scalp merchants can use the H4 construction to tell their LTF biases if in search of longs. For different merchants, ETH was neither at a possible spot to go quick, nor was it exhibiting an inclination for a sizeable bounce.
Because the Liquidation Heatmap confirmed, a bounce above $2,400 can be the primary set off for brief sellers.
A liquidity sweep of $2,450 may very well be adopted by a value plunge. Alternatively, a bounce towards $2,700-$2,800 can’t be dominated out.
This zone was each a liquidity cluster and a key Fibonacci retracement space. Due to this fact, merchants can look ahead to a couple of days for ETH to indicate its hand earlier than seeking to go quick.
A rally past the native excessive at $3,041 will flip the H4 bias bullishly.
Ultimate Ideas
- Ethereum has the potential for a dramatic rebound after the extreme bearishness in latest months.
- That rebound won’t materialize within the coming days, and merchants can stay bearishly biased this week.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.
