Let's talk about what just happened to ETH because it wasn't pretty.
February 5th was a bloodbath. $466 million in liquidations. $382 million of that? Longs getting completely obliterated. ETH dropped nearly 15% in a single day, sliding from $2,148 down to $1,826. If you were leveraged long, you felt that in your chest.
The Fear and Greed Index hit 11. Eleven. We haven't seen numbers that low since 2023. When that index drops below 20, it's not just "people are nervous" it's forced selling, margin calls firing off, and everyone scrambling for the exit at the same time.
The $2,500 zone that used to matter? It doesn't anymore.
Here's what makes this move so brutal. That $2,500 area was legit support for months. Back in May and June last year, ETH sat there consolidating before launching higher in July. November came around, same zone got tested, same bounce happened. Traders had every reason to trust it.
This time? Nothing. Bulls completely no-showed. Price sliced through $2,500 like it wasn't there, kept going past the $2,100 swing level, and didn't look back. The daily RSI hit 18.68 on February 5th the most oversold reading since August 2024. OBV made a new low too, which tells you the selling volume behind this move was serious.
So where does ETH go from here?
The liquidation heatmap paints an interesting picture. Most of the liquidity below current price has already been swept clean. The big magnetic zone further south sits around $1,500 and yeah, that's a real possibility if bears stay in control.
On the flip side, there's clustered liquidity around $2,400 and the $2,700-$2,900 range. ETH could bounce toward those levels in the coming weeks. But here's the thing that's probably where you want to be selling, not buying.
The $2,100 and $2,400 levels are the ones to watch. If ETH manages to crawl back up there, expect sellers to show up aggressively. The demand zone at $2,400 already failed once. Until proven otherwise, bounces are for selling.
$ETH /
$BTC sitting at a 3-year low tells you everything about where Ethereum stands in this market right now. It's not leading. It's not even keeping up. And with the $2,000 psychological level already broken, the burden of proof is entirely on the bulls.
Stay sharp out there. This isn't the market for hope trades.
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