Ethereum slips to $2.2K as ‘extreme fear’ hits – Why THIS level decides next bull run

Ethereum confronted a tricky weekend as its value fell by 17.38% from Saturday’s (the thirty first of January) open at $$2,702.

ETH was buying and selling at $2,219 on the time of writing, and the market-wide sentiment was extraordinarily fearful.

Bitcoin [BTC] was down 4.56% in 24 hours and 12.7% in every week, in keeping with CoinMarketCap information. The Worry and Greed index was at an abysmal 15.

Ethereum futures merchants have confronted $266.53 million in liquidations, with $204.38 million being lengthy. But, this is perhaps the time to purchase extra Ethereun.

Loopy? Maybe, however the reward is nice, and the setup’s invalidation is clearly outlined.

Exploring the Ethereum alternative

Supply: ETH/USD on TradingView

On the weekly chart, Ethereum has a bullish swing construction. This was set in place throughout the rally from $1,383 to $4,955 in 2025, when digital asset treasuries accrued billions of {dollars} price of ETH.

Institutional funding was nonetheless incoming. Bitmine [BMNR] has added 132,813 ETH to its holdings over the previous month. It ought to be famous that their place was dealing with a 42.5% drawdown.

Going again to the technical perspective, the retracement from $4.9k in latest months has almost reached the 78.6% retracement degree at $2,147.

Within the coming days or perhaps weeks, a quick dive beneath this degree to search out liquidity is predicted. A bullish restoration may start thereafter.

AMBCrypto reported that traders have been already treating the drop as a reduction.

Is now the correct time to purchase?

Supply: ETH/USD on TradingView

Completely!

Offered a possible drop to $1,300 per ETH doesn’t faze you. Lengthy-term holders can look to maintain shopping for extra Ethereum.

The weekly chart confirmed that the swing construction was bullish, and a weekly session shut beneath $1,383 is required to flip this round.

The day by day chart confirmed bears have been dominant. The OBV was making new lows, and the DMI signaled a robust downtrend in progress.

Merchants’ name to action- Assess threat and wait

Swing merchants would wish to see bullish power round $2,000-$2,200 earlier than trying to go lengthy. Catching knives, or attempting to time the market backside, can result in a bleeding portfolio.

A drop beneath $2,000 ought to be taken as an early warning sign. Such a situation would replicate that bulls had little urge for food for a reversal, making a drop towards $1,300 extra seemingly.

Remaining Ideas

• The weekly swing construction of Ethereum was bullish, regardless of the heavy losses in latest months.
• Swing merchants ought to look forward to indicators of power earlier than trying to purchase.

Disclaimer: The data offered doesn’t represent monetary, funding, buying and selling, or different varieties of recommendation and is solely the author’s opinion.