ETHUSD Today: Ethereum Price Sinks as $1B Longs Liquidated, February 01
The ethereum price slumped on 1 February after a weekend washout in leveraged bets. ETHUSD traded near $2,449, down about 13% on the day, after a sharp wick toward $2,238 in thin books. A mix of risk-off mood and recent Ethereum ETF outflows amplified the move. For UK investors, expect higher spreads at the London open and fast swings around key levels. Below we cover the crypto crash drivers, the setup on the chart, and practical steps to manage risk today.
Why markets flushed over the weekend
Liquidations spiked as bullish bets were knocked out across crypto. Depending on the window measured, estimates ranged from about $850 million to several billions across majors, hitting ETH, SOL, and DOGE hardest. See context from CoinDesk’s weekend wrap source and deeper historical liquidations perspective from Decrypt source.
Weekend order books are often thin. That made forced selling push prices faster, with ETH briefly tagging the $2,238 area before rebounding. The ethereum price then settled near $2,449 into Monday trade. When markets reopen fully, spreads usually tighten, but stop cascades can reappear if fresh sellers emerge.
Recent Ethereum ETF outflows reduced spot demand and sentiment, adding to the downside. While flows can quickly flip, negative prints during risk-off sessions often weigh on price discovery. For UK traders, remember ETFs and ETNs tied to crypto are restricted for retail under FCA rules, so spot markets and funding costs matter more for execution.
Levels, trend, and volatility to watch
Spot trades near $2,449 with an intraday range of $2,238 to $2,710. Price sits below the 50-day average at $3,050 and the 200-day at $3,671, a weak trend setup. The lower Bollinger Band near $2,771 and Keltner lower band around $2,774 were both breached, signaling short-term exhaustion that can spark reflex bounces if sellers pause.
RSI is around 49, neither oversold nor strong. ADX near 24 shows a developing, but not dominant, trend. ATR of about 149 points highlights wide daily moves. The ethereum price likely stays choppy until momentum improves above key resistance zones and bands narrow, a common sign of stabilising volatility.
A constructive base would see higher lows above $2,238 and reclaim attempts toward $2,700. Stronger volumes versus the ~313 million average, coupled with closes back inside volatility bands, would support that view. Bulls then face the 50-day near $3,050. Until then, rallies can fade quickly, so plan entries around defined support with tight invalidation.
How UK investors can respond today
Use small sizes and pre-set stops. With ATR near 149, day swings can exceed 5%. Consider staggering entries rather than going all-in. The ethereum price can overshoot both ways after liquidations, so try limit orders over market orders to reduce slippage during spikes.
UK investors often fund in sterling but trade USD-quoted pairs. Watch FX conversion costs, card fees, and maker-taker rates. When sizing, think in GBP terms for portfolio risk. If you use recurring buys, check whether your platform converts at spot or adds a spread, which can quietly eat returns.
The FCA restricts crypto-derivatives and ETNs for retail, so most UK users access spot on FCA-registered platforms only. ISAs do not hold crypto directly. Keep records for tax. If you prefer diversified exposure, research listed equities with crypto sensitivity, but remember equity risk is not the same as direct ETH exposure.
Final Thoughts
The weekend washout reset leverage and knocked the ethereum price into a weak technical spot below key moving averages. A wick to $2,238 shows how thin liquidity can magnify forced selling. Into the new week, watch whether price holds higher lows, closes back inside volatility bands, and challenges $2,700. Rising volume versus the recent average would help confirm a turn. For UK investors, focus on risk controls, clear levels, and costs in GBP. Keep position sizes small relative to daily ranges, and prefer limit orders. ETF flow tone and broader risk appetite will likely steer direction. If conditions stabilise, a base may form, but plan for chop first.
FAQs
Why did the ethereum price drop today?
A surge in forced selling knocked out leveraged long positions over the weekend. Thin order books made the move sharper, while recent Ethereum ETF outflows hurt sentiment. Together, that pushed ETH to an intraday low near $2,238 before stabilising around $2,449 as broader crypto weakness weighed on majors.
What levels matter for ETH right now?
Near-term support is the weekend low around $2,238. Initial resistance sits near $2,700, then the 50-day average around $3,050. A series of higher lows and closes back inside volatility bands would suggest stabilisation. Failure to hold above the low risks another liquidity sweep before buyers try again.
How do ETF flows affect ETH?
When Ethereum ETF flows are negative, they reduce steady spot demand and can pressure price during risk-off sessions. Flows can change quickly, but persistent outflows often align with weaker momentum. For retail in the UK, direct ETF access is limited, so impacts are felt indirectly through spot market sentiment.
Is now a good time for UK investors to buy ETH?
It depends on risk tolerance. Volatility is high, so consider small, staged entries and firm stop levels. Many investors prefer waiting for higher lows and a reclaim of nearby resistance before adding. Always account for GBP conversion costs, platform fees, and the FCA’s restrictions on crypto derivatives.
How can I reduce risk during a crypto crash?
Manage size, use limit orders, and predefine exits. Avoid leverage if you are not experienced. Place stops outside obvious clusters and review them as volatility changes. Track volumes and key levels intraday. Keep cash aside for opportunities instead of averaging down aggressively in fast, illiquid moves.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
