Ethereum (Eth), Hedera (HBAR), and Shiba inu (Shib) Face Crossroads as Crypto Market Enters February February

ETH is showing signs of bullish momentum despite ongoing market challenges, HBAR faces a key support level, and SHIB struggles with declining whale activity.

As the crypto market enters February, several tokens are at crucial junctures. Here's an analysis of Ethereum (ETH), Hedera (HBAR), and Shiba Inu (SHIB).

Ethereum (ETH) is showing signs of bullish momentum despite ongoing market challenges. The second-largest cryptocurrency by market cap is trading around $3,180 at the time of writing, according to CoinGecko.

A high-volume move above the falling wedge resistance could trigger a 35% upside, aligning with ETH’s strong historical performance in February.

After a lackluster January, where ETH is set to close in the red for the second consecutive year, largely pressured by negative sentiment surrounding the Ethereum Foundation and a volatile crypto market, February could shift investor focus as it has been Ethereum’s best month historically.

Since 2018, ETH has posted positive returns in February, with an average gain of 17.13%. In Feb. 2024, ETH surged 46.28%.

On-chain data adds to the bullish narrative. According to Arkham data, Trump’s DeFi platform has quietly amassed $250 million in ETH and staked ETH, alongside AAVE, LINK, and ENA purchases.

Meanwhile, exchange flows show that investors are leaning toward buying the dip in the past week, with increasing net ETH withdrawals across most top exchanges.

Further bolstering sentiment, Ethereum’s daily active addresses hit a one-year high of 588,782 on Saturday, as reported by Santiment.

However, not all metrics are painting a bullish picture. According to ETF Trends, Ethereum ETFs recorded a net outflow of $136.20 million on Jan. 28, reflecting mixed institutional sentiment toward the token.

Moreover, ETH still faces a key hurdle at $3,500, with stronger resistance at $3,777 and $4,101, as indicated by Fibonacci retracement levels.

Hedera (HBAR) is trading at $0.3142, up 1.74%, attempting to recover ahead of its mainnet upgrade. The token is forming a falling wedge pattern, a historically bullish setup. A breakout above resistance could trigger a 50% rally.

Fibonacci retracement levels indicate $0.40 and $0.49 as potential targets. The RSI at 50.57 remains neutral but leaves room for further upside, while the MACD at 0.004 signals a buy.

Analysts are divided on the next move. Shawn Sully highlights a Cup and Handle formation, projecting a potential rally to $0.57 if HBAR clears $0.41 and holds above $0.40.

Meanwhile, Eye Future sets a shorter-term take-profit target at $0.3518.

On-chain data signals accumulation, with over $10 million in HBAR outflows from exchanges in the past 48 hours. This suggests that long-term holders are buying the dip, strengthening the bullish outlook.

However, confirmation of a breakout above $0.3275 is needed to validate an extended rally.

Shiba Inu (SHIB) is under renewed selling pressure, reflecting a decline in large transactions. Data from IntoTheBlock shows a 61% drop in whale activity, with large transactions falling from 353 to 136 within 24 hours.

The total volume transferred by whales also dropped by 55%, from 6.81 trillion SHIB to 3.05 trillion SHIB, signaling a significant shift in buying and selling activity.

Despite this, SHIB’s open interest remains strong. According to CoinGlass, there are 18.24 trillion SHIB ($334.44 million) locked in open positions, suggesting that some investors still expect a price surge.

Gate.io leads in open interest, holding 81.03% ($271.03 million) of the total.

SHIB rebounded 2.7% to $0.000018 after the Fed’s rate decision, but weak momentum persists. A death cross looms as the 50-day SMA nears a crossover below the 100-day SMA, signaling downside risk.

The SHIB/USDT daily chart shows a descending triangle, a bearish pattern. Resistance at $0.000020 (0.5 Fib) must break for a rally; failure could send SHIB back to $0.000017.

If selling pressure intensifies, the 1.618 Fib extension at $0.00000779 is the next target. The ADX at 24.08 suggests weak trend strength, requiring higher volume for a breakout.