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ETH Plummets Below $2,000 Amid Market Sell-Off
5 Feb
Summary
- Ethereum's price fell below $2,000, a level not seen since May 2025.
- Founder Vitalik Buterin recently sold $6.6 million worth of ETH.
- Technical indicators suggest further downward pressure on ETH's price.
The cryptocurrency market's sharp downturn has heavily impacted Ethereum, with its price recently falling below $2,000. This marks the lowest point for ETH since May 2025 and represents a more than 50% decrease from its peak value. The token has now experienced three consecutive weeks of losses.
Adding to the selling pressure, Ethereum's founder, Vitalik Buterin, recently sold 2,961 ETH, valued at $6.6 million. In the preceding weeks, he had sold an additional 16,384 ETH, with proceeds earmarked for privacy projects. Despite these transactions, Buterin retains a substantial holding of 227,000 ETH.
Broader investor sentiment has shifted towards caution, evidenced by three months of consecutive outflows from Spot Ethereum ETFs, totaling over $68 million in February. Leveraged traders have also faced significant losses, with over $237 million in ETH bulls liquidated in the past 24 hours.
Technically, ETH's breach below the $2,125 support level invalidates a previously bullish pattern. Indicators such as the RSI at 31 and an oversold Stochastic Oscillator suggest continued downward momentum. Analysts are watching $1,500 as a potential next support level, while a weekly close above $2,124 might signal a trend reversal.
