Ethereum (ETH) has faced massive selling pressure and volatility over the past month as the crypto market trends downward, pushing ETH toward crucial demand levels. With uncertainty gripping the market, analysts expect even more volatility in the coming days as traders react to major developments in the crypto space.

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According to White House Crypto and AI czar David Sacks, President Donald Trump signed an executive order on Thursday to establish a Strategic Bitcoin Reserve. This unexpected move has sparked renewed speculation about how government involvement in crypto could impact broader market trends.

Despite the chaos, Ethereum has managed to hold the key $2,000-$2,100 support zone, a crucial level that traders are watching closely. Top analyst Daan shared insights on X, highlighting that ETH has so far defended this major demand level despite the extreme volatility.

The next few trading sessions will be pivotal, with Ethereum hovering near a critical price range. If ETH can hold support and regain momentum, a reversal could be on the horizon. However, failure to maintain these levels could trigger another wave of selling, deepening the current market correction.

Ethereum Faces A Crucial Test

The market enters a critical moment. Ethereum’s price has lost over 50% of its value since late December, sparking massive fear and panic selling. The steep decline has left many investors questioning whether the long-awaited alt season will even happen this year, as Ethereum and most altcoins struggle to reclaim bullish momentum.

With ETH failing to establish a strong uptrend, analysts remain divided on whether a recovery is possible in the near term. Some believe that the current price action signals deeper weakness, suggesting that Ethereum could face further downside before seeing any meaningful reversal. Others, however, see potential for a rebound, especially as ETH continues to hold key demand zones.

Daan’s technical analysis on X points out that Ethereum has managed to hold critical demand as a good sign amid recent market dynamics. This support, around $2,000, has been tested multiple times and remains a crucial area for bulls to defend.

Daan also noted that Ethereum has formed a higher low on lower timeframes, indicating a possible reversal if momentum builds. He emphasized that for ETH to regain bullish structure, it needs to break above $2,300 and fill the inefficiency left from Monday’s full retrace. A decisive move above this level would confirm strength and could trigger a push toward higher price targets.

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While Ethereum’s outlook remains uncertain, its ability to hold key levels suggests that a recovery is still possible. The next few trading sessions will be critical in determining whether ETH can reclaim bullish momentum or continue to struggle amid broader market weakness.

ETH Price Action: Technical Levels

Ethereum has entered an intense phase where uncertainty dominates price action and speculation drives market sentiment. With traders searching for direction, ETH is currently trading at $2,200, having established key support above $2,000. However, this level remains fragile, and bulls must continue to defend it to prevent further downside.

For Ethereum to confirm a recovery rally, it needs to push above $2,500, reclaiming lost ground and shifting momentum back in favor of buyers. A move above this level would signal renewed strength, potentially setting ETH up for a strong rebound. However, until bulls break past resistance levels, ETH remains in a high-risk zone where volatility can drive price swings in either direction.

The $2,000 support zone remains the key factor in determining Ethereum’s fate for the coming year. If ETH holds this level, it could serve as a foundation for long-term growth. However, if it breaks down, selling pressure could intensify, leading to a prolonged bearish trend.

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With Ethereum trading at a pivotal moment, the next few weeks will be crucial in shaping its market trajectory. Whether ETH sees a breakout or another decline depends on how well bulls can defend key support zones.

Featured image from Dall-E, chart from TradingView

• Bitcoin and crypto prices fell as markets reacted to January PCE data.
• The Fed’s favourite inflation measure came in hot, jolting markets lower with S&P 500 declining nearly 1.4% and Dow dropping about 400 points.
• Crypto analyst Rekt Capital says BTC price remains in positive territory as long as bulls hold support above $23k.

Bitcoin price continues to struggle after the rejection from the $25k resistance, but today’s dip comes as the market reacts to hotter-than-expected Personal Consumer Expenditure (PCE) data.

As stocks got whacked on Friday, with the S&P 500 falling nearly 1.5% and the Dow Jones Industrial Average dropping 400 points, BTC price retreated under $24k to hit lows of $23,130 across major exchanges.

Crypto, Wall Street drops on CPE data

The CPE is the Federal Reserve’s most preferred inflation measure and sentiment has shifted on the latest data release as investor jitters fill up again. 

The Fed uses the CPE price index to assess how sharply prices have risen within the US economy, and data shows prices spiked 0.6% in January and 5.4% year-over-year. Core CPE also came in hot, at 4.7% against the forecast 4.3% to suggest inflation remains an issue.

“Inflation remains too high. We’re going to have to do more to get back to 2%,” said Cleveland Federal Reserve President Loretta Mester. “I see a little more impetus in the inflation measures than my colleagues. We’re going to have to bring interest rates above 5% and hold there for a time,” she added during an interview with CNBC.

Bitcoin price outlook

The reaction on Wall Street also cascaded into the crypto market, with BTC price declining below a key support line recently highlighted as a “confluent support zone.” The uncertainty around the Fed’s interest rates saw most stocks scorched in early trades, a scenario also replicated in crypto with Ethereum dropping below $1,600.

For Bitcoin’s short-term price outlook, popular crypto trader and analyst Rekt Capital says bulls could remain in control if BTC holds above $23k. However, a bearish outlook would materialize if price breaks lower.

“BTC Weekly retest of the confluent area that is the Lower High and Monthly Range High resistance is now in progress. Price needs to hold here for the retest to be successful. However, Weekly Close below this area would be a bearish sign,” the analyst noted.

A failed #BTC Weekly retest of ~$23400 as support would mean that price remains inside the Monthly Macro Range

Let’s see how the Monthly Closes

1M Close above ~$23400 -> likely range breakout

1M Close below -> $BTC stays in & range & could dip lower in range#Crypto #Bitcoin pic.twitter.com/xTAqH7pVlm

— Rekt Capital (@rektcapital) February 24, 2023

After failing to overcome $24,000 yesterday, bitcoin took a serious dive and dropped by over $1,500 at one point.

Most altcoins are in the red today as well, as they were yesterday. However, Dogecoin emerges as today’s top performer, following news on the Twitter front.

Bitcoin Below $23K

As CryptoPotato reported earlier today, January 2023 is en route to becoming the asset’s best-performing month in over a year. This is because BTC stood below $17,000 at the start of the year and has skyrocketed by roughly 40% in the following 31 days.

It was even higher yesterday when the bulls initiated another impressive leg-up that resulted in coming inches away from $24,000. This became BTC’s highest price point since mid-August 2022.

However, the bears were quick to remind of their presence and pushed bitcoin south almost immediately. In the following hours, the cryptocurrency fell to $23,000 and kept plunging to an intraday low of $22,400 (on Bitstamp).

Despite recovering some ground since then, BTC still struggles below $23,000. Its market cap is down to $440 billion, and its dominance over the alts has taken a minor hit and is now at 42.4%.

DOGE Pumps 8%

Most altcoins charted impressive gains at the end of last week, but the trends have changed now. Ethereum went well above $1,600 during the weekend, but two consecutive days of price drops have pushed it to $1,570 as of now.

Ripple, Cardano, Polygon, OKB, Solana, Polkadot, and Avalanche are also slightly in the red from the larger-cap alts.

Binance Coin, Shiba Inu, and Litecoin are among the few exceptions with insignificant gains. Dogecoin, however, stands out as today’s top performer. DOGE is up by 8% as Elon Musk hinted that Twitter could soon integrate crypto payments.

The cumulative market cap of all crypto assets, though, has seen over $15 billion gone in a day and is down to $1.040 trillion on CMC.

Major coins traded in the red on Thursday, as the global market cap went down 1.75% reaching $1.04 trillion, recorded at 8:30 p.m. EST.

Cryptocurrency	Gains (+/-)	Price
Bitcoin	-2.34%	$22,681
Ethereum	-3.46%	$1,567
Dogecoin	-1.69%	$0.085

What Happened: The largest cryptocurrency by market value, Bitcoin BTC/USD, fell over 2% to under $23,000. Ethereum ETH/USD  was changing hands at $1,567, down 3.4%. Dogecoin DOGE/USD was down 1.69% in the last 24 hours, trading at $0.085.

U.S. equities soared, as investors digested the most recent GDP report and its positive implications for the economy. The tech-heavy Nasdaq Composite rose 1.7%, the S&P 500 gained 1.1%, and the Dow Jones Industrial Average was up 0.6%. 

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The FTX creditor list, containing 116 pages of information, reveals the far-reaching implications of FTX’s bankruptcy. Companies such as Netflix and Apple AAPL are among those listed as creditors. This comprehensive document further shows that FTX’s debt reaches universities, airlines, charities and media organizations, as revealed in the newest court filing.

“Bitcoin pared losses as soft-landing hopes returned following better-than-expected U.S. GDP data. ​Bitcoin still looks poised to consolidate here until next week’s FOMC decision. One notable crypto story was a fine given to Coinbase by the Dutch Central Bank. The central bank’s penalty is for offering crypto products prior to their registration. ​ This $3.6 million fine is a slap on the wrist but another reminder that a global crackdown on crypto continues,” said Edward Moya, a senior market analyst at OANDA, in a note seen by Benzinga.

Crypto analyst Michaël van de Poppe said “we’ll all be laughing” at current BTC and ETH prices in just a few short years. In the shorter term, he is keeping a close watch on the $1,450-$1,600 range for Ethereum,

As for BTC, the analyst says he’s not interested in longs at Bitcoin’s current price levels.

Poppe said that altcoins Fantom FTM/USD and Polygon MATIC/USD are currently blasting off. “FTM and MATIC going through the roof.”

Crypto analyst Justin Bennett said that Bitcoin is currently sitting at its all-time high trend line. 

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Bitcoin has continued with its bullishness as it surged its price above the USD$23,000 level, a positive signal amid miners reduced the sales of their mined coins. On-chain flows flagged by Bitifinex analysts indicate that the amount of Bitcoin moved from Bitcoin mining addresses to wallets owned by cryptocurrency exchanges has declined to multi-year lows.

Selling Power Low, Favorable For A BTC Rally                      

As per a Bitfinex analyst, Bitcoin miner sales are at a three-year low. The report claims that the selling could be a sign that Bitcoin miners are in the mood to accumulate coins as they expect the surge of prices of the flagship cryptocurrency.

The declined Bitcoin sales from mining companies mean low selling pressure from these market actors. Therefore, it signals bullishness for the broader market.

The analysts, however, stated that the recent uptick in Bitcoin price might witness a correction as investors try to recoup their profits amid the current price surges.

The analysts identified large wallet sizes (>$1M) as the majorly responsible for accumulating Bitcoin. They further said such wallets, as well as major market actors, are the ones creating the buying pressure that comes after the FTX saga and a series of bearish events generally witnessed last year.

The analysts mentioned that since the second week of January, the numbers of wallets with $1,000 and $10,000 worth of Bitcoin have increased. The analyst further acknowledged that the trading activities of retail investors had accompanied the uptrend.

According to the figure above, the current low Bitcoin selling pressure coincided with the lowest sales in November last year. The current low level signals a green (bullish) indicator for the cryptocurrency.

When miners sell more BTC, it implies a bearish for the coin value. Conversely, when mining firms don’t have the selling urge, this suggests a bullish trend for the crypto market.

Today’s Bitcoin Price

Bitcoin has surged its value by almost 40% this month, trading at $22,909, up 1.48% on Tuesday. The crypto is trading at levels not witnessed since the downfall of the FTX exchange. BTC volume stands at about $26.82 billion, an increase of 12.78% in the past 24 hours, as per Coinmarketcap.

As highlighted above, the rise in Bitcoin value could be attributed to whales committed to accumulating coins amid surging prices. The bullish trend is also seen in the global crypto market capitalization, which is trading at a higher level, around $1.06 trillion, up 1.27% in the last 24 hours, according to Tradingview.

Featured image from Unsplash, Chart from TradingView.