$ETH โ Following BTCโs Sharp Sell-Off
Ethereum mirrored Bitcoinโs massive drop, falling from ~$2,400+ highs in late Jan/early Feb to $1,700โ$1,800 lows during the Feb 5โ6 market crash, wiping trillions in market cap and triggering extreme fear. Itโs now bouncing to ~$1,950โ$2,060 after a +5โ12% relief rally, with recent closes around $2,055โ$2,062.
This appears to be a classic dead-cat bounce within a broader downtrend:
Key prior supports (~$2,100โ$2,200) are now acting as resistance.
Failed to hold the $2,268โ$2,360 zone.
Price remains below $2,500 psychological level, under 50/200 SMAs, with bearish momentum and continued negative ETF flows.
Sentiment: Oversold relief squeeze is temporary; short-term overbought conditions signal fade potential. Analysts watch for further declines toward $1,800โ$1,500 if support breaks.
Speculative Short Setup (1H/4H, NFA):
Entry: $2,050โ$2,100 (fade into resistance cluster)
Stop Loss: $2,150โ$2,180 (above recent swing high)
Targets:
โข TP1: $1,900โ$1,850 (prior lows/support)
โข TP2: $1,800โ$1,750 (psychological + deeper support)
โข Stretch: $1,500โ$1,600 (if panic resumes)
Momentum favors the downside continuation, with relief rallies likely to be short-lived.
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