Key Notes
- Crypto Analyst Sherpa warns Ethereum may drop to $2,529 support level, with further decline to $2,258 possible if buyers fail to defend this price zone.
- Despite market pressure, Ethereum maintains leadership with $59 billion TVL and $123 billion in stablecoins, while continuing development with the upcoming Pectra upgrade.
- The Pectra upgrade will introduce significant improvements, including EIP-7702 enabling regular Ether accounts to function as smart contracts and EIP-7271 increasing validator stake limits.
The altcoin industry, led by Ethereum ETH $2 750 24h volatility: 3.2% Market cap: $331.51 B Vol. 24h: $24.72 B , has continued to signal midterm bearish sentiment. As Bitcoin BTC $95 994 24h volatility: 0.3% Market cap: $1.90 T Vol. 24h: $25.56 B price dropped below $96k earlier on Monday, the TOTAL 2 market cap continued to form a bearish flag after retesting the neckline of a double-top correction pattern in the daily time frame.
Consequently, the total crypto market cap dropped around 2.5 percent in the past 24 hours to hover about $3:3 trillion. The rising fear of crypto correction has been exaggerated by the uncertainties of tariff trade wars led by the United States.
Ethereum Price Faces Potential Selloff
From a technical analysis standpoint, Ether’s price has been forming a bearish flag in the daily time frame. In the daily time frame, Ether’s price has consistently closed below the previous support level of around $3,035, thus confirming the onset of a heightened correction phase.
Moreover, the ETH price experienced a major resistance level of about $4k, resulting in the ongoing correction. According to crypto analyst alias Altcoin Sherpa, Ether’s price is aiming for a support level of around $2,529. If the Ether buyers fail to defend the support level around $2,529, a further drop towards $2,258 will be imminent.
$ETH im not going to get trapped on this one pic.twitter.com/r981pJstSU
— Altcoin Sherpa (@AltcoinSherpa) February 17, 2025
Ether Whales Shows Mixed Reactions
The overall demand for Ether by whale investors has experienced significant fluctuations in the past few months. Since the beginning of February 2025, the supply of Ether on centralized exchanges (CEXes) has declined from 16.19 million to about 15.35 million at the time of this writing.
According to on-chain data analysis provided by IntoTheBlock , the Ethereum network has seen its transactions greater than $100k in value decline from 6,416 txs on February 12 to around 3,711 txs on Monday.
Meanwhile, the US spot Ethereum ETFs recorded a net cash outflow of about $26.26 million last week, thus currently holding a cumulative total net inflow of about $3.15 billion.
Fundamental Aspects
The Ethereum network remains an undisputed web3 and tokenization leader, with more than $59 billion in total value locked and over $123 billion in the stablecoins market cap. Despite facing significant competition from other layer one (L1) chains, led by Solana SOL $177.9 24h volatility: 5.8% Market cap: $86.78 B Vol. 24h: $4.97 B , the Ethereum network has continued to grow, fueled by institutional investors seeking to diversify their BTC investments.
In a bid to remain relevant and ensure sustainable future prosperity, Ethereum’s core developers have been working on the Pectra upgrade. Scheduled to happen soon after the testing on Sepolia and Holesky ends in the coming weeks, the Pectra upgrade will introduce several features to the Ether network.
On the top list of key features of the Pectra upgrade is the EIP-7702, which will enable regular Ether accounts to function as a smart contract. The other top feature of the Pectra upgrade is the EIP-7271, which will increase the validator stake limit from 32 ETH to about 2,048 ETH units.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
