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Despite January closing on a positive note and proving to be a strong month for Bitcoin, the past 24 hours have delivered poor price action following what initially appeared to be a promising start to February. In the last six hours alone, Bitcoin has dropped over 4%, falling back to just above $102K.
Some are attributing this sudden correction to the White House’s recent confirmation that 25% tariffs on Canada and Mexico, along with 10% tariffs on China, will go into effect on February 1. Many economic analysts remain highly sceptical about the tariffs, arguing that they will provide no benefit and actually hinder everyday Americans. Since the confirmation was made in the early hours of the morning, all major markets have declined. Both the S&P 500 and Nasdaq have fallen, triggering a domino effect across the crypto markets, with Bitcoin and most altcoins following suit. Even traditional ‘safe havens’ like gold have taken a hit, while the US dollar has strengthened, indicating broader risk-off sentiment.
Despite the broader bearish trend in crypto, two major projects have stood out—not only outperforming Bitcoin and most other cryptocurrencies but also managing to close the day with solid gains. These are Ethereum (ETH) and Sonic (S). Over the last two days, Ethereum has outperformed Bitcoin by nearly 8%, providing the first glimmer of hope for ETH bulls. Meanwhile, despite weak price action following the Fantom-to-Sonic migration, Sonic has begun to show some positive signs, gaining 30% in just two days.
That being said, Bitcoin remains the key driver of the market, still locked in the $100K–$109.9K range that it has occupied for the past couple of weeks. Will February finally break this prolonged consolidation, or is it time for Ethereum to take the lead?
Stormrake Spotlight: Ethereum (ETH) ($3,301)
Stormrake Spotlight: Ethereum (ETH) ($3,301)
Ethereum has shown exceptional strength in recent days, rewarding those who accumulated ETH within the highlighted support zone. Currently trading at $3,300, ETH is up 10% from the bottom of the range, after reaching a high of $3,437 yesterday. This marked a higher high based on the wick high.
However, ETH’s momentum has slightly stalled following the broader market reaction to the tariff news. That said, the bullish structure remains intact. If ETH can clear the 55 EMA, this should reaffirm the uptrend and lead to further gains.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin looked poised to establish a solid base above $104K and attempt a move toward its all-time highs. However, this did not play out, as BTC sharply fell below this key level, flipping all moving averages and shifting momentum back in favour of the bears.
Despite this setback, the overall bullish structure remains intact—for now. As long as this low holds, another attempt to reclaim $104K remains possible. However, if it fails, BTC could quickly retest $100K.
BTC Total ETF Flows for 31 Jan: $ - 51.0 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
As noted earlier, Ethereum has been outperforming Bitcoin in the past couple of days, and this strength is evident in the price action. ETH has maintained higher highs and higher lows, keeping its bullish momentum intact despite the current pullback.
The key level to watch is $3,370—if the 55 EMA holds as support, ETH is likely to retest this level and continue its uptrend.
ETH Total ETF Flows for 31 Jan: $ - 31.9 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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