Ethereum price prediction: is ETH a good buy in February?

Ethereum price remained under pressure on Sunday morning as Bitcoin and most altcoins crashed. The ETH coin fell to a low of $3,000, down by almost 25% from its highest level in 2025. So, is it safe to buy Ethereum in February as its chart sends mixed signals?

Why Ethereum price is crashing

Ether crashed on Sunday morning amid the ongoing risk-off sentiment in the crypto industry. Bitcoin dropped below the key support level of $100,000. Most altcoins move in sync with Bitcoin's performance. 

A key factor is that the market expects that the market is afraid of the implications of the US tariffs on imported goods. The US started implementing Donald Trump’s tariffs on imports, a move that will trigger inflation in the country.

He imposed a 25% tariff on Canadian and Mexican goods, and 10% on Chinese ones. In response, Canada announced 25% tariffs on Canadian goods worth over $107 billion. Mexico also vowed reciprocal tariffs even as the government called for cooperation on trade. 

Trump hopes that these tariffs will lead to more business activity in the US, which will reduce its large trade deficit. However, analysts expect these tariffs to widen the deficit, reduce business activity, and push the Federal Reserve to maintain a hawkish view.

Ethereum price also crashed as its ecosystem data showed a potential weakness in the network. According to DeFi Llama, the total value locked (TVL) in its DeFi ecosystem dropped by 6.45% in the last 30 days to $63 billion. Its bridged TVL was $216 billion, while the network's stablecoins are worth $117 billion. 

Ethereum DEX volume and fees

Ethereum's price also crashed as the DEX volume in its network dropped sharply. In the last 24 hours, DEX protocols in the network handled over $2.35 billion in volume, much lower than BSC and Solana’s $4.4 billion and $4.39 billion, respectively. 

These protocols handled $18.9 billion in the last seven days, while Solana and Ethereum processed $41 billion and $24 billion, respectively. Solana’s DEX volume in the last 30 days stood at $253 billion compared to Ethereum’s $84.7 billion. 

These numbers mean that Ethereum is losing market share in key industries that it has long dominated. As a result, its fees have been overtaken by other networks in the crypto industry like Tether, Jito, Tron, Solana, and Circle. It has made $150 million in fees this year, while Circle has made $151 million.

Spot Ethereum ETF inflows have also been weak, affecting its price. Many months after the ETF approval, these funds have attracted $2.76 billion in inflows, bringing the total assets to over $11 billion. In contrast, Bitcoin funds have accumulated over $40.5 billion in inflows this year.

Ethereum price analysis

The weekly chart shows that the ETH price found a strong resistance at $4,100 two times: one in March last year, and another one in December last year. This means that the coin formed a double-top chart pattern, a popular bearish sign whose neckline is at $2,136. 

On the positive side, the ETH price has formed an inverse head and shoulders pattern and remained above the 50-week moving average. That is a sign that the token may still stage a strong bullish breakout in February. If this happens, the next point to watch was $4,100. A move above that level will point to more gains, potentially to $5,000.