ETHFI Technical Analysis Feb 3

ETHFI’s 24-hour trading volume dropped to 21.89 million dollars, falling below the 7-day average; this indicates weak selling pressure in the downtrend and provides potential accumulation signals.

Volume Profile and Market Participation

ETHFI’s current volume profile shows that market participation is trending at low levels. The 24-hour trading volume of 21.89 million dollars remained below the 7-day average volume (approximately 28-32 million dollars range). This signals that both buyers and sellers are approaching cautiously as the downtrend continues. In the volume profile, low nodes (low-volume areas) dominate in the region where the price is consolidating at the $0.49 level; this reflects indecisive market participation before a strong support or resistance forms.

For a healthy volume profile, volume is expected to increase during upward movements and decrease during downward ones. Here, however, volume remains dry during downmoves, indicating weak selling conviction. Multi-timeframe (MTF) volume analysis detects 8 strong levels across 1D/3D/1W timeframes: 1 support/2 resistance in 1D, 1S/2R in 3D, 3S/2R in 1W. These levels are supported by volume clusters, especially the $0.4290 support level, which carries a high volume score (75/100).

Accumulation or Distribution?

Accumulation Signals

The accumulation phase is when big players quietly accumulate, providing hidden signals in volume. Although ETHFI’s RSI is at 30.18 in the oversold region, no volume increase is observed in recent declines – on the contrary, volume is decreasing. This is a classic accumulation sign: Sales remain weak while the price bases. There is potential for volume increase around $0.4290; if the price tests this level and volume stays dry, it could indicate smart money entry. The low-volume declines over the last 3 days draw a picture similar to the Wyckoff accumulation model.

Distribution Risks

Distribution risk becomes evident with increased selling at high-volume peaks. Currently, volume is low in the $0.5003-$0.5340 resistance zone, meaning no strong distribution yet. However, with Supertrend bearish and price remaining below EMA20 ($0.59), a volume explosion when approaching $0.64 resistance could trigger distribution. Although the MACD negative histogram provides support, volume confirmation is lacking; this increases the risk of a fake breakout.

Price-Volume Alignment

Divergence forms when price movements are not confirmed by volume. ETHFI’s -1.39% 24-hour decline does not show the expected volume increase – on the contrary, volume is low. This indicates weak conviction in the bearish price action; healthy downtrends come with high volume. We are seeking volume confirmation in upmoves: A break above $0.5003 requires a volume increase. RSI oversold and volume divergence boost short-term reversal potential. If 1W supports in MTF (around $0.4290) are protected by volume, bullish divergence could form.

Big Player Activity

Big players (institutional/whales) are tracked during volume explosions or dry volume periods. ETHFI has seen no sudden volume spikes recently, but the low-volume basing resembles whale accumulation. The Value Area Low (VAL) in the volume profile shows clustering around $0.45 – this is a potential area for big buys. We don’t know exact positions, but the volume decrease during downmoves implies smart money is not joining the selling. What to watch: A sudden volume surge (e.g., 40M+), signaling big player entry. Check detailed data in ETHFI Spot Analysis and ETHFI Futures Analysis.

Bitcoin Correlation

BTC at $76,634 is down -2.91% in a downtrend; Supertrend bearish. Altcoins like ETHFI have high correlation to BTC (0.85+); if BTC breaks $76,139 support, pressure on ETHFI toward $0.4290 increases. BTC resistances at $78,739-$84,450 should be monitored; if BTC recovers, ETHFI could rise to $0.5340. Rising BTC dominance leads to volume flight from altcoins – currently in caution mode.

Volume-Based Outlook

The volume-based outlook is cautiously bullish: Low-volume declines signal accumulation, with a volume test at $0.4290 support being critical. Without a breakdown, bullish target is $0.7680 (low score 13), bearish $0.1690 (score 22). Wait for volume increase; 30M+ volume is required for a healthy uptrend. Short-term, a $0.5003 breakout must be confirmed by volume. Long-term, MTF supports are strong; if accumulation continues, reversal is near.