Ethereum (ETH) extended its downside move on Sunday, February 1, sliding to the $2,300 level and confirming a decisive bearish breakdown after losing the critical $3,500–$3,600 support zone.
According to the crypto analyst Crypto Patel, the decline represents a nearly 40% drop from recent highs and marks a clear shift in Ethereum’s market structure amid a broader risk-off phase across global crypto markets.
Previously, Crypto Patel stated that a move below the $3,500 price range may lead to further declines in price. This came to pass as the price continued to decline further, breaking through several key price supports to confirm a bearish continuation pattern after losing its technical support base.
Source: Crypto Patel X post
Despite the significant sell-off, the sentiment of some investors over the long term is slowly improving. The price zone of $2,200 is considered an initial zone of accumulation, whereas the zone of $1,850 to $1,550 is considered a good zone of support based on historical price action.
Moving forward, cycle-focused investors have long-term upside projections that range between $10,000 and $20,000 in future market cycles.
However, Crypto Patel notes that these targets are subject to market recovery and ETH breaking through some of its major structural resistances.
Also Read: Can Ethereum Bounce After a 12% Drop to $2,407?
Ethereum Technicals Reveals Sustained Bearish Pressure
According to TradingView data, as of Sunday, February 1, ETH has continued its bearish trend in its weekly chart due to the strong rejection from the $4,000-$4,800 resistance zone. ETH has broken through the moving average ribbon and has fallen below both the 100-week and 200-week simple moving averages.
The loss of the $2,450-$2,500 support area has caused ETH’s long-term price structure to suffer. The breakdown implies a rise in downside risk as buyers of the token fail to hold up the prices at the previously defended levels.
Source: TradingView
The momentum indicators continue to support the bearish view. The relative strength index has moved down to the mid-30s, which is an indication of increasing selling pressure without any sign of bullish divergence. In addition, the MACD is still very negative with widening red histogram bars.
Large ETH Transfer to Binance Raises Investor Uncertainty
On-chain movements have also contributed to caution in the near term. Data from Lookonchain, as of Sunday, February 1, revealed that Trend Research deposited 10,000 ETH worth $24.3 million into Binance on Sunday. Such large deposits into exchanges often spark market interest, as they may indicate selling intentions.
Source: Lookonchain X Post
Trend Research has traditionally held substantial positions in Ethereum and has accumulated approximately 651,310 ETH worth an estimated $1.56 billion.
Although the current transfer does not necessarily imply selling pressure, it has raised some questions regarding the market conditions and the sentiments of the large investors.
Also Read: Ethereum Funding Rates Drop to FTX-Era Lows Amid $300 Billion Market Selloff
