TLDR
- Ethereum saw its market capitalization decrease by $100 billion over a seven-day span, falling by almost 27% from $365 billion to $265 billion.
- The price of ETH reached $2,107 on Wednesday, its lowest point since May 2025, and is presently trading at $2,095.
- Blackrock moved $170 million in bitcoin and ethereum to Coinbase Prime, a transaction that has historically preceded potential institutional sell-offs.
- Despite the price drop, Ethereum’s validator entry queue has extended to 71 days, indicating robust staking demand.
- Technical indicators suggest ETH is in oversold territory with the RSI below 30, and analysts have identified key support levels between $2,100 and $2,200.
Ethereum experienced its most significant price decrease of the year this week, with the second-largest cryptocurrency losing $100 billion in market value over a seven-day period.
The market capitalization fell from $365 billion on January 28 to $265 billion by February 4, marking a nearly 27% loss within a week.
ETH’s price dropped to $2,107 on Wednesday, reaching its lowest point since May 2025. The cryptocurrency is currently trading at $2,095.
Ethereum was the biggest decliner among the top ten cryptocurrencies during this period, experiencing greater losses than bitcoin and other major digital assets.
Reports indicated that Blackrock, the world’s largest asset manager, transferred $170 million in bitcoin and ethereum to Coinbase Prime. Such transfers have historically been precursors to institutional liquidations.
This news appeared to intensify selling pressure from retail investors, who interpreted the transfer as a bearish indicator.
Network Fundamentals Show Strength
Despite the price decline, on-chain metrics suggest a different trend. Ethereum’s validator entry queue has reached 71 days, signaling strong demand for staking assets.
Analysis from Elfa AI suggests that this imbalance between supply and demand could support a future price recovery. The backlog includes both institutional and individual stakers.
8000$
Maybe I’m crazy but I still think that will reach 8000$.
We need one more last sweep at 2100 and after I’m expecting a bounce from there.
— Crypto Million (@CryptoMillionYT)
Investment firm Perennial maintains its position, holding $6 billion in unrealized losses from its 4.3 million ETH treasury, demonstrating a “diamond hands” approach from institutional holders.
The market value to realized value ratio indicates that ETH is approaching a critical support zone. Analyst Ali Charts notes that historical patterns suggest a cycle bottom could form near $1,959.
Pricing Bands also hint that Ethereum has room to explore lower levels.
Based on this model, a cycle bottom could form below $1,959.
— Ali Charts (@alicharts)
Technical Analysis Points to Downside Targets
Technical charts show that ethereum has completed a breakdown of an inverse cup-and-handle pattern, with the neckline break occurring at $2,960, which has now shifted from support to resistance.
Analysts have projected a downside target of $1,665 based on this pattern. Immediate structural support is located between $2,100 and $2,200.
The relative strength index has fallen below 30, indicating oversold conditions, although the RSI trendline continues to decline.
The moving average convergence divergence histogram is expanding in negative territory, and the Chaikin money flow indicator remains significantly negative. These signals confirm that selling volume is still exceeding buying activity.
ETH is trading below $2,200 and the 100-hourly simple moving average. A bearish trend line has formed, with resistance at $2,255.
The first key resistance level is at $2,250, with the next major resistance near $2,390.
If ethereum fails to surpass $2,250, initial downside support is near $2,100. The first major support is at $2,075. A breach below this level could drive the price towards $2,050 or $2,000.
ETH briefly dropped to $2,067 before recovering to its current price of $2,095.
