Ethereum Reclaims $2,300 After a 20% drop— Key Test for Bulls Ahead

Ethereum has reclaimed the $2,300 level following a brutal 20% weekend selloff that pushed the cryptocurrency to lows of $2,158.94. The crash wiped out over $91 billion in market capitalization, leaving analysts watching closely for signs of stabilization.

The second-largest cryptocurrency by market cap now trades at $2,375.16, marking a 3.14% increase in the last 24 hours. Despite this recovery, ETH remains down 17.95% over the past week. Its market capitalization now stands at $286.88 billion.

The broader crypto market suffered significant losses during the same period. Bitcoin dropped over 7% within 24 hours, shedding more than $265 billion in market value. Solana recorded a steeper 13% decline, losing over $16 billion in capitalization.

XRP stood as the sole outlier among major cryptocurrencies. It recorded positive ETF net inflows of $52.26 million while others experienced heavy redemptions.

Ethereum ETF Outflows and Institutional Accumulation

Ethereum ETFs recorded outflows totaling $326.93 million during the selloff, according to market data. Solana products saw $2.45 million in redemptions. Bitcoin-focused ETFs experienced the largest outflows, exceeding $1.49 billion, as reported by Coinwaft.

📊 UPDATE: XRP SPOT ETFS RECORD NET INFLOWS WHILE BTC, ETH, AND SOL ETFS SEE OUTFLOWS, BTC -$1.49B, ETH -$326.93M, SOL -$2.45M, XRP +$52.26M. pic.twitter.com/0IqX6yGvAr

— Coinwaft (@coinwaft) February 2, 2026

Meanwhile, institutional activity painted a more complex picture. BlackRock moved $133 million in ETH to Coinbase for ETF operations. This transfer introduced uncertainty among traders regarding potential overhead supply.

In contrast, publicly traded treasury firm BitMine Immersion Technologies accumulated 41,788 ETH worth approximately $96 million last week. This purchase brought its total holdings to 4.29 million ETH, representing over 3.5% of the circulating supply.

Chairman Tom Lee said:

“Therefore, BitMine is in a position to ride out crypto volatility while earning recurring income and staking rewards. There is no pressure to sell any ETH at these levels, because there are not debt covenants or other restrictions/provisions.”

He also cited strong on-chain fundamentals supporting the acquisition. Ethereum daily transactions recently hit record highs near 2.5 million.

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Regarding $ETH prices:
Said Thomas “Tom” Lee, Executive Chairman of Bitmine:
“ETH prices have dropped sharply in the past month from ~$3,000 to ~$2,300. This occurred while Ethereum daily transactions hit an all-time high (ATH) of 2.5mm (per https://t.co/2yTDfINcsQ) and active… pic.twitter.com/ztBkHfTAkn

— Bitmine (NYSE-BMNR) $ETH (@BitMNR) February 2, 2026

On-chain data revealed additional whale activity. Trend Research deposited 20,000 ETH valued at $43.88 million to Binance. Two wallets dormant for five years deposited 44,490 ETH worth $98.3 million into Aave.

These wallets subsequently borrowed $104 million in USDT to purchase 45,319 ETH at an average price of $2,295.

Ethereum OGs are buying $ETH using looped borrowing.

Two wallets that were dormant for 5 years deposited 44,490 $ETH($98.3M) into #Aave, then borrowed 104M $USDT to buy 45,319 $ETH at $2,295 avg.https://t.co/Wc1QkkFX2Ghttps://t.co/3ky7LSXIoc pic.twitter.com/PJ10L3Q74k

— Lookonchain (@lookonchain) February 2, 2026

Ethereum Sentiment Hits Extreme Fear Levels

The CMC Fear & Greed Index registered at 15, categorized as “Extreme Fear.” This marked a slight improvement from 18 recorded the previous day. Overall market sentiment remains deeply negative despite the marginal reduction in panic.

Total cryptocurrency market capitalization increased 2.01% over 24 hours. The mild recovery allowed oversold assets like Ethereum to stage a technical rebound. However, analysts warn this sentiment shift remains fragile.

The 14-day Relative Strength Index for ETH reached 23.04 during the selloff. This reading fell well below the 30 threshold typically signaling oversold conditions. Such levels historically precede technical bounces as selling pressure exhausts.

ETH Technical Indicators and Key Price Levels

Ethereum trades within a strongly bearish structure on the daily chart. Price action shows a clear sequence of lower highs and lower lows since the August 2025 peak near $4,800. The current bounce from $2,100 appears corrective within the established downtrend.

Bollinger Bands reveal significant volatility expansion. The upper band sits at $3,555.18, the middle band at $2,945.07, and the lower band at $2,334.96. ETH currently trades just $40 above the lower band, indicating extreme bearish pressure.

MACD readings confirm sustained bearish momentum. The MACD line stands at -78.16 with the signal line at -90.05. The histogram at -168.22 shows expanding red bars, suggesting renewed selling pressure.

Key support zones include $2,334-$2,375, currently under test, and $2,100-$2,150 as the primary downside target. A break below current support increases probability of a cascade toward the $1,850-$1,950 range.

Resistance levels cluster at $2,600-$2,700 and the critical $2,945-$3,000 zone aligned with the 20-day moving average. ETH must reclaim the middle Bollinger Band for any trend reversal consideration.

Volume analysis shows higher volume on red candles and lower volume on green candles, confirming distribution rather than accumulation. The current recovery lacks conviction buying.

Price trajectory remains bearish. Bulls must defend $2,300 support and generate follow-through buying to challenge $2,500-$2,700 resistance. Failure risks a retest of $2,100 lows with extended targets near $1,600-$1,800.