Bitcoin Drops Below $88k Amid Solana Fee Surge and Whale Transfers
- Whale Transfers Impact: On January 21, large Bitcoin holders transferred substantial amounts to Binance, signaling distribution in the market; while such transfers do not guarantee immediate price declines, they have historically correlated with downturns.
- Solana Fee Surge: On January 24, transaction fees on the Solana network spiked, reflecting peak network activity similar to an event in October 2025, indicating a decrease in risk appetite as these fee increases often accompany Bitcoin price corrections.
- Derivatives Liquidation Pressure: The thin market liquidity led to significant liquidations in derivatives, causing price drops in Bitcoin and various altcoins, with analysts noting that open interest remained well below late-2025 highs, suggesting leverage had already been reduced prior to the recent price movements.
- Political Risk Influence: Analysts at XWIN Research Japan attributed the market volatility to rising U.S. political uncertainty, particularly concerns over a potential government shutdown before the January 30 funding deadline, which further exacerbated market instability.
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Technical Analysis for ETH
Technical Sentiment Analysis for Ethereum (ETH) As of , Ethereum (ETH) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for ETH stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, ETH is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Ethereum (ETH) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 624.398 | 1186.099 | 1705.248 | 2266.949 | 2786.098 | 3347.799 | 3866.948 |
| Fibonacci | 1186.099 | 1598.984 | 1854.064 | 2266.949 | 2679.834 | 2934.914 | 3347.799 |
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