Ethereum (ETH) is heading towards $2,800, below its support level and down about 22% of its value. The move has triggered targets measured in triangle patterns and intensified selling pressure in derivatives and spot flows.
Ethereum fell below its support level and held at $2,800, creating new targets and bearish scenarios that estimate a range of $2,100–$2,150. The ETH drop was 22%, and the breakout also left the current trading level at $2,700–$2,750.
The Relative Strength Index (RSI) fell from the mid-60s in early January to the mid-30s by January 29, signaling weakened buying pressure, which caused the price to drop sharply. A crossover of the 111-day moving average below the 200-day moving average further reinforced the bearish technical case—a setup that preceded deeper ETH declines in previous cycles.
Why is the price of Ethereum falling?
One of the main reasons for the drop in ETH’s price is the number of outflows and forced selling by its holders. Ether ETFs saw $155.6 million in outflows on January 29 alone, and over $416.8 million in leveraged positions.
Exchanges also saw large transfers out of hot wallets; a reported net outflow of $6 billion from a major platform in the same week suggested a shift to cold storage or reduced liquidity on exchanges.
The Net Unrealized Profit/Loss (NUPL) moved from an “anxiety” band to a “fear” band, consistent with a risk-averse stance among holders. Analysts have noted that these signals historically align with the beginning or deepening of corrective phases rather than short, contained pullbacks.
For market participants, the combination of broken technical bottoms, negative momentum, and disproportionate ETF/derivative flows increases tail risk for leveraged positions and reduces short-term liquidity. Traders should reassess leverage and margin exposure and closely monitor exchange balances and ETF flows as indicators of sustained selling pressure.
