Ethereum's Strong Bullish Momentum Sparks Investor Interest Despite Selling Pressure

Despite recent selling pressure, Ethereum has continued to exhibit strong bullish signals, with the cryptocurrency demonstrating resilience and maintaining its recovery momentum. Investors have been actively moving significant amounts of ETH onto exchanges, indicating a potential upward breakout in February.

The recent influx of 122,000 ETH, valued at around $390 million, into exchanges reflects cautious investor sentiment as they capitalize on Ethereum's price recovery above $3,000 to secure profits. However, the fact that Ethereum's price has not sharply declined suggests that investors are not anticipating a prolonged downtrend but rather aiming to lock in short-term gains. The market is currently in a consolidation phase, with ETH investors closely monitoring for signs of renewed buying interest.

On a macro level, Ethereum's favorable momentum for recovery is evident through the MVRV Score, which sits below 1.0, indicating that ETH is undervalued compared to its historical market cycles. This positioning suggests ample room for sustained recovery without immediate price reversal risks, provided that broader market conditions remain supportive.

Chart indicators show that Ethereum has been trading within a falling wedge pattern in January, with a breakout potentially propelling the cryptocurrency past the critical $3,303 resistance level, indicating a bullish trend reversal. If successful, the next target for Ethereum would be $3,530, requiring sustained bullish momentum and increased buying activity to maintain upward pressure in the weeks ahead.

While market-wide optimism and investor confidence are crucial factors in Ethereum's trajectory, continued selling pressure could hinder its ability to break past $3,303. In such a scenario, Ethereum might consolidate between $3,303 and $3,131, potentially retesting $3,028 and delaying further price recovery.