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Ethereum Plummets 9.84% with $961 Million Liquidated Amid Bearish Market Sentiment

Overview of Today's Market (February 1, 2026)

  • Opening Price: $2,449.22
  • Closing Price: $2,428.77
  • Highest Price: $2,472.60
  • Lowest Price: $2,392.28
  • Amplitude: Approximately 9.84% decline throughout the day

Fluctuation Phases

Ethereum experienced a significant drop during the day, starting from an opening price of $2,449.22, peaking at $2,472.60 in the early trading hours, before falling sharply to a low of $2,392.28 and closing at $2,428.77.

Trading Volume and Liquidation Data

  • Total Trading Volume: Approximately $50.38 billion
  • Liquidation Volume: Total liquidations on the Ethereum network reached approximately $961 million, accounting for around 44% of the total $2.2 billion liquidated across the crypto market
  • Long-Short Ratio: Long positions dominated, accounting for about 80-85% of the liquidated positions

Technical Analysis

Key Patterns

  • Candlestick Patterns: Bearish trend with a symmetrical triangle formation indicating potential volatility
  • Bollinger Bands/EMA: Price is testing the lower band of the Bollinger Bands, suggesting potential oversold conditions

Indicator Signals

  • Relative Strength Index (RSI): 26.52, indicating an oversold condition
  • MACD: Histogram shows bearish momentum confirming the prevailing downtrend

Support/Resistance Levels

  • Support Level: $2,250
  • Resistance Level: $2,690

Market Sentiment and Capital Dynamics

Major Players Behavior

Major players are reportedly taking advantage of the liquidity premium, with significant selling pressure observed throughout the day.

Institutional Movements

Grayscale's Ethereum holdings saw a net inflow of approximately $150 million into their Ethereum products, although overall ETF inflows remain weak, indicating cautious institutional sentiment.

Retail Investor Sentiment

Retail sentiment is bearish, reflected in the liquidation data where many retail investors were liquidated during the price drop.

Macro and Policy Impacts

Federal Reserve Signals

Recent Federal Reserve remarks indicate a cautious approach towards interest rates, impacting overall investor sentiment in the crypto market.

SEC Regulatory Developments

The SEC's evolving stance on Ethereum and potential approvals for Ethereum ETFs are contributing to mixed market sentiment.

Global Market Linkages

Ethereum's performance is closely correlated with the U.S. stock market volatility. Additionally, fluctuations in gold prices and the U.S. dollar index reflect broader macroeconomic uncertainties.

Tomorrow's Strategies and Risk Warnings

Operation Suggestions

If Ethereum breaks below the support level of $2,250, further declines towards $2,100 may be expected. If it stabilizes above $2,250, a cautious long position could be considered with a light position.

Events to Watch

Monitor announcements on regulatory changes from the SEC and upcoming macroeconomic data releases that could influence market sentiment.

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