Ethereum price has finally recorded some pullback after a 40% rally in January, giving investors an opportunity to buy ETH at lower levels. The ETH price hit a high of $1,674 last Saturday and fell under $1,550 today due to profit-taking by traders as the rally had no significant pullback.
While investors speculate whether this is the best level to buy Ethereum, crypto analyst Michael van de Poppe believes there’s more to it.
Ethereum (ETH) Price Can Fall To $1,450
Popular crypto analyst Michael van de Poppe in a tweet on January 25 predicts a further fall in the Ethereum price to near $1,450. He believes Ethereum price may witness some rebound from the crucial support level of $1,550, but the actual bounce for another rally will come only from below the crucial support level.
Ethereum Price in 1Hr Timeframe. Source: Michael van de Poppe
“Some slow grind upwards and then one more sweep in the coming days and the correction should be over and we’ll continue the party.”
Ethereum (ETH) price fell nearly 5% in the last 24 hours to hit a low of $1,530. Profit booking by traders and selloff by whales were the primary reasons behind the recent fall in ETH prices.
According to Whale Alert data, a whale dumped 24,768 ETH worth $38 million to crypto exchange Coinbase today. Whales had transferred ETH worth almost $200 million to crypto exchanges and liquidity pools in the last few days.
On-chain data by Santiment confirms profit-taking transactions since Ethereum hit a high of $1,674. The Ethereum Ratio of Daily On-Chain Transaction Volume in Profit to Loss jumps higher on January 20 indicating a rise in profit-taking transactions.
Moreover, the social dominance of Ethereum has hit its highest value since July last year after the price drop, indicating traders looking for a “buy the dip” opportunity.
Ethereum Ratio Volume Transactions and Social Dominance. Source: Santiment
Ethereum Price Shows Slight Recovery
Ethereum (ETH) price fell over 5% in the last 24 hours, with the price currently trading at $1,553. The 24-hour low and high are $1,530 and $1,637, respectively. Furthermore, the trading volume increased by 14% after the fall, indicating a slight increase in interest among traders.
However, ETH price will remain under pressure until the U.S. Federal Reserve‘s rate hike decision on February 1 and the fourth-quarter GDP data due on Thursday.
Also Read: Reasons Why Bitcoin (BTC) Price Rally Is Likely Over
Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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