Summary
– Ethereum continued to slide as traders reduced risk exposure.
– Futures data showed rising activity but falling confidence.
– Technical signals point to limited upside without a strong rebound.
Ethereum fell toward $2,200 after another wave of selling, with rising volume and weak momentum keeping traders defensive. At the time of writing, ETH traded at $2,264, down 2.8% from the prior day and deeper into a vulnerable range. The drop follows a steep sell-off that has pushed ETH lower across major time frames.
Over the past week, ETH has moved between $2,120 and $3,034, with a clear downward trend. The token has lost about 24% in seven days and 28% over the past month, sitting roughly 54% below its all-time high of $4,946 reached in August 2025.
Trading activity increased as prices fell. Spot volume rose 21% to $47.25 billion over the last 24 hours. Derivatives showed a similar pattern: CoinGlass data recorded futures volume up 38% to $105 billion while open interest slipped about 1.18% to $27 billion, suggesting traders are trimming exposure rather than adding fresh leverage.
On-chain activity raises caution flags. A Feb. 4 report from CryptoQuant contributor CryptoOnchain showed Ethereum’s 14-day moving average transfer count near 1.17 million. Historical spikes of this kind (e.g., Jan. 2018 and May 2021) have often preceded steep price drops. While higher transaction counts can reflect network use, abrupt surges are also linked to large-scale repositioning and distribution during uncertain market phases. The current data does not prove a market top but places ETH in a zone where downside risk has historically increased, especially with weak price momentum.
Technically, Ethereum remains in a daily downtrend, forming lower highs and lower lows since failing near the $4,000 area. Repeated pullbacks have been capped near the 20-day moving average (mid-Bollinger Band), with upside momentum fading quickly. ETH has also moved below the lower Bollinger Band, signaling elevated downside volatility rather than exhaustion. The loss of $3,000 has weakened structure; the zone briefly reclaimed but did not hold and now acts as resistance. Daily RSI sits in the low 30s, offering little sign of a durable recovery.
A modest recovery could occur if selling eases and price holds the $2,150–$2,200 area. A meaningful sentiment shift, however, would require ETH to reclaim $2,300 and push toward $2,700–$2,800. Without a daily close above those levels, any upside attempts are likely to remain shallow and short-lived.
