Introduction
Ethereum, one of the largest cryptocurrencies, has historically seen strong price increases in February, with many traders keeping a close eye on this pattern to see if it persists. However, this year might deviate from past trends as certain factors suggest potential selling pressure. While previous Februarys have often brought impressive gains, the current market dynamics, including investor sentiment, trading volumes on exchanges, and historical price signals, may influence ETH’s performance differently.
Ethereum Track Record in February
In previous years, February has been one of Ethereum’s best months. In 2024, its price rose by 46.46%, and in 2017, it increased by 48.09%. These jumps were much higher than ETH’s usual performance. Many traders believe that this happens because January is often slow, and activity picks up afterward.
Ethereum started February 2025 after a 4.26% decline in January, which has led some investors to hope for another rebound. However, recent data suggests that the market may not be as strong as before, and Ethereum’s price could face challenges in the coming weeks.
Ethereum MVRV Ratio Shows a Warning Sign
One way to predict Ethereum’s price movement is by looking at its MVRV ratio. When the MVRV ratio drops below its 160-day moving average, it often means that ETH’s price could fall.
A well-known analyst, Ali Martinez, pointed out that this happened in June 2024, leading to a 40% drop in price. Back then, ETH fell from $3,500 to $2,100 in just a short period. If the same thing happens again, Ethereum could face strong selling pressure, and traders should be prepared for possible price drops.
Traders Moving Ethereum On and Off Exchanges
Another way to understand where Ethereum’s price is headed is by looking at exchange flows. If traders move ETH onto exchanges, it usually means they are getting ready to sell. If they move it off exchanges into private wallets, it shows they want to hold onto it. At the end of 2024, many traders moved ETH onto exchanges, which created selling pressure. However, from December through January 2025, more ETH was moved off exchanges, which is often a sign that investors believe in ETH’sfuture and expect prices to rise.
Recently, some traders have started moving ETH back onto exchanges, which suggests that they might be preparing to sell again. If more people decide to sell, Ethereum’s price could struggle to move higher.
What’s The Next Price Move
Ethereum is currently trading at $3,392 and has shown some upward movement. If buyers remain strong, ETH could rise above $3,300, which would be a good sign for further price increases. However, if selling pressure builds up, ETH could fall below $3,200 and possibly test the $3,000 support level.
Conclusion
Ethereum has done well in past Februarys, but this time, things are not as clear. The MVRV ratio has dropped, and more ETH is being moved onto exchanges, which suggests that some traders may be preparing to sell. At the same time, many investors are still holding onto their ETH, hoping for a price increase. Whether ETH follows its usual February rally or faces a downturn will depend on how traders react to these market signals
