Ethereum Tests Key Resistance, Bulls Hold Support; Analysts Bullish for February

Ethereum's price has gained momentum, testing key resistance levels as it seeks to break through and continue its upward trajectory. The second-largest cryptocurrency by market capitalization is currently priced at around $3,150, having faced pressure near its 200-day exponential moving average (EMA) at $3,136. Despite a 2.6% dip on Sunday and continued lower trading on Monday, bulls managed to hold the support level last week.

The daily Relative Strength Index (RSI) for Ethereum is at 42, indicating bearish momentum as it remains below the neutral 50 mark. The Moving Average Convergence Divergence (MACD) also showed a bearish crossover on Sunday, suggesting that selling pressure is still strong. Ethereum is currently stuck under a downward trendline, which could either push the price up or pull it down further, depending on market conditions.

Analysts are optimistic about Ethereum's prospects in February, as the month has historically been one of the strongest for altcoins. Ethereum has averaged a 17% return in February, with a notable 46.2% gain last year. On-chain metrics show bullish momentum, with daily active addresses reaching a yearly high of 588,000. Major investors, including Trump's World Liberty Financial, have also increased their Ethereum holdings substantially. Exchange net flows suggest buying pressure, and the Stochastic Oscillator hints at a possible reversal. If Ethereum clears resistance at $4,000, it could gain significant momentum and soar above $5,000 in the upcoming months.

Solana (SOL) has also shown signs of recovery, trading at $240 after a 3.6% daily increase. The cryptocurrency reclaimed its position after dipping below the $230 support level, accompanied by a 46% increase in trading volume. Over $6.3 billion worth of Solana changed hands across platforms during this period. The Cboe BZX Exchange has resubmitted Solana ETF applications for Bitwise, VanEck, and other major fund managers following the SEC's earlier rejection in 2024. The shift in regulatory leadership under the acting SEC has sparked optimism, with Polymarket bettors predicting an 86% chance of Solana