Ethereum price continued its downtrend for the fifth straight day, dropping over 11% in the past 24 hours amid massive liquidations of bullish bets and whale selling. As macroeconomic concerns continue to lower risk appetite, will the asset fall below the $2,000 next?
Summary
- Ethereum price fell to an 8-month low of $2,172 on Monday.
- Massive liquidations of bullish bets and whale sell-offs have exacerbated losses.
- Multiple bearish patterns were confirmed on the daily chart.
According to data from crypto.news, Ethereum ($ETH) price fell 11% to an 8-month low of $2,172 on Monday morning Asian time before stabilizing at a little above $2,200 at press time. The drop extended its losses to over 25% from its Thursday high of around $3,000.
Ethereum price dropped as massive liquidations hit the crypto market, with most of it coming from highly bullish bets being wiped out after major cryptocurrencies lost key support levels. Notably, Bitcoin fell below the $80,000 threshold while Ethereum lost its $2,800 support, sliding further toward the $2,600 range.
Data from CoinGlass show that over $757 million in leveraged positions were liquidated across the crypto market, with the bulk of it coming from long liquidations. Ethereum long traders faced the brunt of the pain with $213.59 million liquidated in the past 24 hours, with nearly $182.34 million liquidated within the first 12 hours.
When long positions get liquidated, they tend to create forced selling pressure. The series of liquidations that began over the weekend, when over $2.4 billion in longs were liquidated, continues to scare traders off the market.
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Another key reason why Ethereum has been in a free fall is the selling pressure from whales. Notably, whales that hold between 10,000 and 1 million $ETH have sold billions worth of $ETH over the past week, according to data from Santiment.
Whales have been selling $ETH over the past week | Source: Santiment
At the same time, Ethereum ETFs saw nearly $327 million in outflows over the past week as institutional investors curtailed their exposure.
Such large-scale sell-offs tend to trigger retail panic that leads to more forced exits and deeper drawdowns, at least in the short term.
On the macroeconomic front, U.S. President Donald Trump’s nomination of Kevin Warsh as the next chair of the Federal Reserve has altered market expectations. Warsh is widely considered hawkish by crypto proponents due to his historical record of advocating for monetary discipline.
Additionally, a partial U.S. government shutdown that began early Saturday added another layer of stigma for investors, creating a data vacuum and stalling regulatory progress.
Ethereum, along with the other major crypto assets, including Bitcoin (BTC), has tanked since these developments.
Ethereum price analysis
On the daily chart, the Ethereum price has confirmed a breakout from a rising wedge pattern, a bearish configuration with two ascending and converging lines, which has historically been followed by a sharp trend reversal and significant price drops.
Ethereum price has confirmed multiple bearish patterns on the daily chart — Feb. 2 | Source: crypto.news
Following the breakout, the $ETH price then fell below the neckline of a much larger inverse cup-and-handle pattern that had formed since mid-2025. Inverse cup and handles are some of the most bearish patterns in technical analysis, often signaling the continuation of a long-term downward trajectory.
Together, a confirmation of both these bearish patterns makes it highly likely that Ethereum would continue its downtrend, potentially losing the $2,000 psychological support level if the selling pressure persists.
Momentum indicators like the MACD and RSI support the bearish forecast. The MACD lines were pointing downwards while the RSI had fallen into the oversold territory. While an oversold RSI typically signals a reversal could be underway, any short-term relief rally could likely be undercut by the prevailing bearish sentiment in the sector.
At press time, the Crypto Fear & Greed Index was showing a score of 14, positioning the crypto market within extreme fear levels.
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