• Bitcoin posts fresh 2-year high this week but fails to rally

• Ethereum violates $3,000 for the first time since April 2022

• ECB warns that cryptos are worthless despite ETF approval

Bitcoin enters a consolidation phase

Bitcoin is on track for a solid monthly performance in February, rebounding strongly from its post-ETF bottom and posting consecutive higher highs. This week, the king of cryptos stormed to a fresh more than two-year peak of $52,990 but failed to extend its advance.

Despite some bullish developments such as Nvidia’s upbeat earnings, which boosted risk sentiment across the board, Bitcoin seems to be stuck in a range in the past few sessions. This loss of bullish momentum is not something worrisome given the price’s steep advance in the past three weeks, as long as it holds above the $50,000 psychological mark.

In 2023, Bitcoin’s trajectory had been characterized by periods of consolidation and low volatility usually followed by strong breakout moves. Hence, the current sideways pattern is unlikely to last for long as investors are bracing for key market events such Bitcoin halving.

ECB reaffirms harsh stance on cryptos

A potential reason why Bitcoin and the broader crypto market failed to extend their gains in the second half of this week could be the comments coming from ECB members on Thursday, suggesting that digital assets have zero intrinsic value. ECB officials, Bindseil and Schaaf, essentially argued that despite the spot-ETF approval by the Securities and Exchange Commission, cryptocurrencies’ fundamental value continues to be zero, given their lack of cash flows or returns.

Moreover, they stated that the whole crypto market is a speculative bubble, entailing risks for both the society and environment. They also highlighted potential reasons for Bitcoin’s resilience, including market manipulation due to the lack of regulations, demand for funding of illegal activities and shortcomings in authorities’ measures.

Ethereum seems to have more upside potential

Ethereum has been outperforming Bitcoin this week, jumping above the $3,000 psychological level for the first time since April 2022. The leading altcoin might attract more interest in the upcoming months due to the increasing speculation of a spot-Ethereum ETF approval and the impending Dencun update. If we consider that Bitcoin has already enjoyed the institutional ‘love’, Ethereum appears to have more room to the upside.

From a technical perspective, Ethereum leaped to a fresh 21-month peak of 3,034 this week before surrendering some gains. However, the broader short-term uptrend remains intact, with the digital coin appearing to be building a solid base for its next upleg, around the $3,000 psychological mark.

Should bullish pressures persist, the price might challenge the February 2022 resistance of $3,050, whereas a pullback could meet support at the January peak of $2,720.