Analysts are now cautiously observing the Ethereum market as it teases a breakdown below $2,500. This comes after a prolonged period of selling pressure in the crypto market, which was particularly noticeable during Friday’s U.S. trading hours. This pressure was most evident in Bitcoin, which saw a long-wick rejection candle. The selling pressure has also affected most major altcoins, with Ethereum being no exception. The market sentiment currently shows no signs of bottoming out, however, the historical trend of Ethereum price signals a potential recovery in February.
The Ethereum price correction could extend another 14% before the resistance key support trendline near $2,200. A bearish crossover between the 50-and-100-day exponential moving average is also expected to accelerate the market selling pressure. However, an ascending trendline in the daily chart points to an uptrend trajectory in Ethereum.
When looking at Ethereum’s historical performance, February has often proven to be a strong month. Years such as 2024, 2023, 2022, and 2017 all saw notable gains, with an average return of 28.8% according to Cryptorank data. Despite this, so far in February 2025, Ethereum price has recorded a 20.84% decline. This serves as a reminder that past performance does not guarantee future results. Therefore, Ethereum holders should also consider the broader market sentiment before basing their decisions solely on historical data.
Over the past two months, Ethereum has seen a significant drop from $4,108 to $2,572, a loss of 38%. This downward trajectory has resulted in the breach of a key support level at $2,800, opening the way for sellers to extend the current correction. If the bearish momentum continues, Ethereum could see a further drop of 14% to test the long-standing support trendline at $2,200. This trendline has provided a reliable support for dip buyers since June 2022, helping maintain a sustained uptrend in Ethereum.
While the current market sentiment may seem bleak, Ethereum holders can take solace in the coin’s historical performance. If history repeats itself, the coin price could stall its downtrend at the aforementioned trendline and prepare for the next recovery leap. This could potentially see Ethereum rechallenge the $4,000 resistance level.
Overall, while the immediate outlook for Ethereum might not seem positive, investors are reminded to consider the coin’s historical performance and broader market sentiment. Despite the current selling pressure, Ethereum’s past performance in February suggests the possibility of a recovery in the coming weeks. As always, investors are advised to stay informed and make decisions based on a holistic understanding of the market.
