Investors Stay Cautious
Recent data from On-chain metrics indicated that around 122,000 ETH worth around $390 million flowed into exchanges. That would suggest that investors booked profits on Ethereum’s breakthrough above $3,000 amid some caution. Despite the heavy selling pressure, ETH hasn’t seen any violent sell-off yet. That should mean investors do not expect any prolonged downturn, but rather have secured their gains in the short term.
Ethereum remains in a consolidation phase, with traders looking for signals of renewed buying interest. The MVRV Score, which measures market valuation, is still below 1.0. This suggests ETH is undervalued but has room for a recovery. The indicator is not at extreme levels, meaning Ethereum is not at an immediate risk of a major price drop.
Key Resistance Levels to Watch
Ethereum has been trading within a falling wedge pattern, a technical setup that often signals a breakout. If ETH moves above the critical $3,303 resistance level, it could confirm a bullish reversal. This could push the price toward $3,530.
However, continued selling pressure may prevent ETH from breaking above $3,303. If the price drops below $3,131, Ethereum could retest $3,028, delaying further recovery. February will be a crucial month for ETH’s next big move.
