The biggest altcoin Ethereum (ETH) has managed to gain more than 40% in value over the past month. ETH price surged 7% on February 1, reaching a market cap of $204 billion. It is also trading at around $1660 per token.
The recent price surge in Ethereum was a result of the cryptocurrency market’s reaction to the FOMC meeting. The crypto market has reacted positively as the interest rate is in line with the expected 25 basis points increase.
As a matter of fact, all developments should not mean complete relief for ETH investors. On-chain data shows profit taking is up, thus tending to decline in February.
On-chain data provider centimentreported that looking at ETH’s Aroon indicator on the daily chart shows that the uptrend has weakened significantly over the past few weeks. The Aroon bullish line was at 21.43%.
Usually, when the Aroon Up line approaches zero, it indicates a weak uptrend and a distant high. This basically indicates the possibility of a trend reversal.
Ethereum Price Fluctuations
As reported by Koinfinans.com, Ethereum has been stuck around $1506 to $1680 for the past two weeks. That means it is close to upside resistance. As a result, if the price wants to continue the rally, it has to break the resistances now. If this happens, the price could go up to $2,400.
However, the Aroon indicator signals a trend reversal. In conclusion ETH priceThe risk of further falls still remains strong. Therefore, any close below $1,500 will weaken the bullish case theory that points to more price corrections towards $1,350.