With important developments in the Ethereum (ETH) market, there is an expectation of an increase towards the $4,000-$4,500 range in February.
Despite the negative close in January, a number of indicators point to the imminent start of a bull trend for Ethereum, with institutional interest likely to play a major role.
“The extraordinary buying power from WLFI could propel ETH to new highs by March,” says market analyst Ted Pillows.
Ethereum analysts predict that ETH could reach $4,000-$4,500 in February, given WLFI’s aggressive buying and historical performance trends.
WLFI’s ETH Purchase: Making a Significant Impact on the Market
World Liberty Financial (WLFI), which is close to former President Trump, has attracted attention by purchasing 63,219 ETH worth around $200 million since November 2023. The move is considered a positive sign for Ethereum’s price stability and growth potential.
Analysts are noting the positive correlation between WLFI’s investments and Ethereum’s market performance. “Continued purchases by WLFI could push ETH towards $4,500 in a matter of weeks,” Ted Pillows wrote, highlighting the growing confidence in Ethereum and its ability to weather past market challenges.
Historical Performance Supports Ethereum’s February Advance
Analyst Lark Davis highlights Ethereum’s historical consistency, noting that February has seen an average gain of 17% over the past eight years. With only one negative month, Ethereum’s potential for a rally appears statistically strong.
Historical data and large purchases by WLFI could reinforce bullish sentiment among investors and help Ethereum reach its target price range.
Key Support Level: $2,100
In this period when the bull trend is dominant, it is critical for Ethereum to maintain certain price levels. In the ETH/BTC pair, Ethereum is struggling to compete with strong rivals such as Solana (SOL). Recently, it has been observed that the SOL/ETH pair has increased by over 1,000% since December 2022, which puts pressure on Ethereum's market superiority.
Analyst Axel Bitblaze says Ethereum’s challenges stem from high transaction fees and slow transaction speeds. While Ethereum is still a leader in the decentralized finance (DeFi) space, the stagnation in its price action points to a lack of institutional investment.
Supporting Bitblaze’s analysis, Sergio Tesla adds that Ethereum has been in a consolidation period for a long time and ETH has been stuck in a wide range for more than four years, indicating that the market has yet to make a significant breakout.
Forecast: Momentum Gains in February
The current market structure signals potential growth for Ethereum, especially if the critical support level at $2,100 holds. Tesla notes that as long as ETH holds this support, momentum for a breakout could build.
This analysis suggests cautious optimism for Ethereum, as institutional investments like WLFI, as well as the importance of technical support levels, are likely to be among the determining factors for Ethereum’s future price movements.
