Ethereum (ETH) has been under intense selling pressure, raising concerns among investors about the coming weeks. The trend remains bearish, and if this momentum continues, ETH could struggle to find support at key levels. Compared to Bitcoin and other altcoins, ETH has been underperforming, fueling a negative outlook among traders.
Unlike previous market cycles where ETH moved in sync with Bitcoin, recent price action suggests a disconnect between the two assets. Key metrics from IntoTheBlock reveal that ETH remains largely uncorrelated to BTC, showing a 30-day price correlation of just -0.06. This lack of correlation means that Bitcoin’s bullish momentum hasn’t translated into strength for ETH, adding to investor uncertainty.
With Ethereum lagging behind other major cryptocurrencies, analysts warn that further downside is possible unless ETH can reclaim critical resistance levels. The market is closely watching whether ETH can find support and reverse this underwhelming price action or if the bearish trend will continue in the coming weeks. As ETH struggles to regain momentum, investors remain cautious, waiting for a clearer signal before making their next move.
Ethereum Correlation With The Market
Ethereum has been stuck in a downtrend since late December, dropping over 28% from its local high of $4,100. Despite Bitcoin’s bullish momentum, ETH has failed to gain traction, leaving investors concerned about its underwhelming price action. Many are now speculating whether Ethereum could face another disappointing year, as altcoins like Solana, Avalanche, and Polygon continue to outperform ETH in terms of price movement and investor interest.
Key metrics from IntoTheBlock provide an interesting insight into Ethereum’s market behavior. Unlike in previous cycles where ETH closely followed BTC, it now appears largely uncorrelated, with a 30-day price correlation of just -0.06.
This means that even as Bitcoin moves higher, Ethereum has struggled to gain momentum. However, other major assets like Polygon (0.91) and Avalanche (0.93) remain closely correlated, suggesting that ETH’s price action is unique in this cycle.
Looking ahead, February could be a pivotal month for Ethereum. Historically, this has been a bullish period for ETH, and many investors are hoping for a trend reversal. If ETH can break key resistance levels and reclaim lost ground, the sentiment around its performance this cycle could quickly shift. However, failure to gain momentum could lead to continued stagnation, allowing other altcoins to take the spotlight.
Ethereum Struggles Below Key Support As Bears Take Control
Ethereum is trading at $3,090 after failing to hold above the 200-day Exponential Moving Average (EMA) at $3,137. This key level was a crucial support zone for bulls, but now that it has been lost, bearish pressure is mounting.
Bulls are in trouble, as the price action suggests ETH is gearing up for another leg down. If this selling pressure continues, ETH could set a new local low and test lower demand around the $2,900 mark. A breakdown below this level would signal a deeper correction, potentially leading to extended consolidation or further declines.
For Ethereum to regain momentum, bulls must reclaim the $3,300 level and push higher. This zone has acted as a strong resistance in recent weeks, and flipping it into support would confirm a trend reversal. However, if ETH fails to reclaim this mark, the next critical level to watch is below $3,000, where additional buying interest may emerge.
With market sentiment leaning bearish, ETH must hold above key demand zones to avoid a more significant downturn. If bulls cannot step in soon, Ethereum could continue to lag behind Bitcoin and other top altcoins.
Featured image from Dall-E, chart from TradingView
