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 .
Source: Coinmarketcap
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.
Ethereum (ETH) 1D Chart/Coinsprobe (Source: Tradingview)
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.
Source: bitcoinmonthlyreturn
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.
BTC Dominance 4H Chart/Coinsprobe (Source: Tradingview)
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.
