Key Points
- Report Ethereum’s price plunged up to 18% to $2,250 during the weekend amid technical breakdowns and macroeconomic concerns.
- Highlight total crypto market capitalization shrank by $220 billion and $2.5 billion liquidations occurred, with Ethereum accounting for $1.1 billion.
- Note large Ethereum holders sold over 1.1 million ETH, intensifying bearish momentum and breaking key technical support levels.
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has endured a bruising week, with its price plunging sharply amid a confluence of bearish forces, technical breakdowns, and macroeconomic jitters. As of January 31, 2026, Ethereum’s value tumbled as much as 18% at its lowest point, touching $2,250 during a turbulent weekend session before recovering some ground. The week’s events have left traders and investors reeling, with many questioning whether the worst is over—or if more pain lies ahead.
According to CryptoSlate, the trouble began in earnest over the weekend, a time notorious for heightened volatility and thinner liquidity in crypto markets. Around 3 PM GMT on Saturday, Ethereum was already down about 5.66%, with XRP dropping nearly 8% and Bitcoin holding up slightly better with a 3% dip. But the real drama unfolded four hours later, when Ethereum wicked down to $2,250, Bitcoin slipped below $80,000 to brush $75,600, and XRP plummeted to $1.58. The carnage was swift and severe, with the total crypto market capitalization shrinking by roughly $220 billion in a single day—falling from $2.84 trillion to $2.62 trillion.
CryptoSlate reported that total liquidations over the prior 24 hours approached $2.5 billion, with Ethereum leading the pack at $1.1 billion liquidated. These forced sales, triggered as leveraged long positions were wiped out, created a cascading effect that accelerated the downward spiral. “Weekends are when crypto loses its shock absorbers,” CryptoSlate observed, noting that fewer traders and market makers are active, leaving the market more vulnerable to abrupt moves and automated liquidations.
Yet, the origins of this weekend rout weren’t solely technical. The timing coincided with major headlines from the Middle East: Israeli air strikes in Gaza that reportedly killed at least 30 Palestinians, including women and children, according to major news outlets cited by CryptoSlate. While it’s impossible to draw a direct line between the geopolitical news and the crypto selloff, the overlap is hard to ignore. Crypto, after all, remains the most sensitive risk-on market, trading around the clock and often reacting to macro shocks faster than traditional assets.
But the weekend’s chaos was only the latest chapter in a broader bearish trend. Over the past week, as reported by multiple sources including CryptoPotato and CryptoSlate, Ethereum’s price has weakened sharply, extending a slide that has persisted through several sessions. Data shows that addresses holding between 10,000 and 100,000 ETH—so-called “whales”—reduced their exposure aggressively, offloading more than 1.1 million ETH, valued at over $2.8 billion at current prices, according to market analysis. Such large-scale selling has added direct pressure to spot markets, reinforcing the bearish momentum and contributing to Ethereum’s breakdown below key technical levels.
Technical analysts have been quick to flag the significance of these breakdowns. On the daily chart, Ethereum fell from the $2,700 area to near $2,400 in a matter of hours, marking roughly a 10% decline in a short span, as documented by CryptoPotato. The asset broke below the crucial $2,500–$2,550 demand zone, which had served as a pivot throughout January. This shift turned former support into resistance, with expanding sell volume confirming strong participation on the downside. The daily Relative Strength Index (RSI) moved toward oversold territory, a sign of stretched momentum, but analysts caution that this alone does not signal a structural bottom.
“The recent rejection from the crucial supply zone around the mid-$3K region marked a clear bearish continuation signal,” CryptoPotato noted. Ethereum is now trading well below its ascending trendline and the psychological $3,000 level, with the structure remaining weak as long as the price stays below these benchmarks. The asset is currently testing a demand zone around $2,500—a level that previously acted as a strong buyers’ base—but a daily close below this area would open the door for further declines toward lower support regions.
On shorter timeframes, the picture is equally grim. Ethereum recently broke below a minor consolidation wedge pattern on the 4-hour chart, experiencing a sharp sell-off into demand with only a modest, unconvincing reaction from buyers. From a structural perspective, any upside in the $2.5K range is likely to be corrective and vulnerable to renewed selling pressure. As long as Ethereum remains below the $2,700 and $3,000 supply zones, sellers retain control.
The liquidation heatmap paints a telling picture. There is a dense liquidity pocket forming around and especially below the $2,500 level, indicating a large cluster of stop losses and liquidation levels from overexposed long positions. As prices trend lower, these liquidity pools become attractive targets for the market, particularly in a bearish environment where forced liquidations drive downside extensions.
The macro environment isn’t helping matters, either. CryptoSlate highlighted that the broader crypto slide is part of a risk-off environment, with investors rotating toward safer assets amid geopolitical tensions and macroeconomic uncertainty. Commodities like oil have been moving higher on Middle East-related risk, and rising yields and inflation fears have cast a pall over speculative assets like cryptocurrencies.
Meanwhile, analyst sentiment has grown more cautious. Crypto analyst Elja (@Eljaboom) warned on X that Ethereum could decline much deeper if the broader market structure continues weakening, outlining a potential move toward $1,435 in an extended bearish scenario. While this is not seen as an immediate target, it underscores the growing apprehension among market watchers as momentum deteriorates.
Still, there are glimmers of hope for bullish traders. If Ethereum can hold the $2,570 support level and reclaim the $2,802 mark as support, the bearish thesis could be invalidated, signaling renewed strength. However, as long as the asset remains below these key levels, the risk of further downside persists.
Ultimately, the events of the past week serve as a stark reminder of crypto’s unique vulnerabilities—especially during weekends, when liquidity is thin and headlines can spark outsized moves. Whether the Gaza strikes were the spark or simply coincided with an already combustible backdrop, the lesson is clear: Ethereum and the broader crypto market remain at the mercy of both technical forces and the unpredictable tides of global news.
For now, traders and investors will be watching closely as the new week unfolds, searching for signs of stabilization—or bracing for the next leg down in this ongoing crypto rollercoaster.
