ETHUSD Ethereum Slides 4.58% as Liquidations Trigger $850M Selloff
Ethereum USD (ETHUSD) is experiencing significant downward pressure on January 31, 2026, as the broader crypto market faces a wave of liquidations. The token has declined 4.58% in the last 24 hours, trading at $2375.80 after hitting a day high of $2710.09. Market data shows $850 million in bullish positions were liquidated across major exchanges, dragging Ethereum lower alongside Bitcoin and Solana. With a market cap of $323.2 billion, ETHUSD remains the second-largest cryptocurrency by value, though recent selling pressure has tested key technical support levels. Understanding the current market dynamics and technical setup is essential for tracking this major asset’s near-term direction.
Why Is ETHUSD Ethereum Dropping Today?
The sharp decline in ETHUSD reflects a coordinated liquidation event that swept through crypto futures markets over the weekend. Data from major exchanges shows that $850 million in long positions were forcibly closed, with Ethereum, Solana, and XRP leading the losses. This liquidation cascade typically occurs when leveraged traders face margin calls during rapid price declines.
Market sentiment has shifted dramatically negative. Retail traders are exiting positions while large holders, or “mega-whales,” are quietly accumulating at lower prices. The broader macro environment includes geopolitical tensions between the US and Iran, which have increased risk-off sentiment across all asset classes. Additionally, the US government’s new sanctions on crypto exchanges linked to Iran have added uncertainty to the market outlook.
ETHUSD Ethereum Technical Analysis
The technical picture for ETHUSD shows mixed signals with some concerning indicators. The Relative Strength Index (RSI) sits at 49.07, indicating neutral momentum with no overbought or oversold conditions present. The Moving Average Convergence Divergence (MACD) shows a histogram value of 29.38, suggesting the signal line remains below price action, which typically indicates bearish pressure.
The Average Directional Index (ADX) reads 24.43, just below the 25 threshold that signals a strong trend. This means the current downtrend lacks the strength needed for a sustained breakdown. Bollinger Bands show the price at $2375.80 positioned well above the lower band at $2771.08, providing a cushion before extreme oversold conditions emerge. Support levels are critical: the lower Bollinger Band at $2771.08 and the 50-day moving average at $3050.78 represent key areas where buyers may step in.
ETHUSD Ethereum Price Forecast
The price forecast for ETHUSD suggests a recovery trajectory over the coming months, though near-term volatility remains elevated. Monthly Forecast: $2536.09 represents a 6.7% gain from current levels, indicating modest recovery potential within 30 days. Quarterly Forecast: $2787.04 suggests an 17.3% rally by end of Q1 2026, assuming stabilization occurs. Yearly Forecast: $3636.09 implies a 53% annual gain, reflecting the long-term bullish case for Ethereum despite current weakness.
These targets assume market conditions stabilize and regulatory clarity improves. Forecasts may change due to market conditions, regulations, or unexpected events. The path to these levels depends on whether the current liquidation event marks a capitulation bottom or if further selling pressure emerges. Historical data shows that after major liquidation events, recovery often follows within 2-4 weeks as forced sellers exit and value buyers accumulate.
Market Sentiment and Trading Activity
Trading volume for ETHUSD reached 546.7 million on January 31, 2026, representing 1.70x the 30-day average volume of 312.8 million. This elevated volume confirms that the recent decline occurred on strong conviction selling, not light trading. The relative volume spike indicates institutional participation in the selloff, suggesting this move carries weight.
Liquidation data reveals that long positions dominated the forced closures, with $850 million in bullish bets wiped out across Ethereum, Solana, and other altcoins. This suggests that leverage was concentrated on the upside, and the sudden reversal caught many traders off-guard. The fact that mega-whales are accumulating during this weakness suggests they view current prices as attractive entry points for long-term holdings.
Key Support and Resistance Levels
ETHUSD has established critical technical levels that traders are monitoring closely. The 50-day moving average at $3050.78 represents the first major support zone above current prices, offering a potential bounce target if selling momentum slows. The 200-day moving average at $3671.04 sits significantly higher and represents the longer-term trend line that would need to hold to maintain the bull case.
On the downside, the lower Bollinger Band at $2771.08 provides immediate support before extreme oversold conditions trigger. The year-to-date low of $1383.26 is far below current levels, suggesting there is substantial room before capitulation occurs. Resistance above current prices begins at the day high of $2710.09, followed by the 50-day moving average at $3050.78. Breaking above $3050 would signal a potential reversal and could attract fresh buying interest.
What’s Next for ETHUSD Ethereum USD?
The near-term direction for ETHUSD depends on whether the current liquidation event marks a capitulation bottom or signals further weakness ahead. Market data from CoinDesk shows that pemegang bitcoin jangka panjang (long-term holders) are selling at the fastest pace since August, suggesting some capitulation is occurring. However, the fact that mega-whales continue accumulating indicates institutional confidence in longer-term valuations.
The monthly forecast of $2536.09 suggests that a modest recovery is likely within 30 days if the market stabilizes. Regulatory clarity from the US government regarding crypto exchanges and the resolution of geopolitical tensions could provide catalysts for a rebound. Traders should monitor the $2771.08 support level closely, as a break below this level could trigger additional selling pressure toward lower support zones.
Final Thoughts
ETHUSD Ethereum USD is navigating a challenging period marked by significant liquidations and negative market sentiment as of January 31, 2026. The 4.58% daily decline reflects $850 million in forced position closures, though technical indicators suggest the selloff may be reaching exhaustion. The RSI at 49.07 indicates neutral momentum, while the ADX at 24.43 shows the downtrend lacks extreme strength. Key support levels at $2771.08 (lower Bollinger Band) and $3050.78 (50-day moving average) are critical areas to monitor. The monthly price forecast of $2536.09 suggests recovery potential, while the yearly target of $3636.09 reflects confidence in Ethereum’s long-term fundamentals. Market data shows mega-whales accumulating at current prices, which historically precedes rallies. Traders should watch for stabilization above the $2771 support level as a potential signal that the liquidation event has run its course. The broader crypto market recovery will likely depend on resolution of geopolitical tensions and regulatory clarity from US authorities.
FAQs
ETHUSD declined due to $850 million in long position liquidations across crypto futures markets. Ethereum, Solana, and XRP led losses as leveraged traders faced margin calls. Geopolitical tensions and US sanctions on Iran-linked crypto exchanges added to selling pressure.
The monthly forecast for ETHUSD targets $2536.09, representing a 6.7% gain from current levels. This assumes market stabilization and reduced liquidation pressure. The quarterly target is $2787.04, suggesting 17.3% upside by end of Q1 2026.
RSI at 49.07 indicates neutral momentum with no overbought conditions. MACD shows bearish pressure with histogram at 29.38. ADX at 24.43 suggests the downtrend lacks strong conviction. Bollinger Bands show price above the lower band at $2771.08, providing support.
No, ETHUSD is not oversold. The RSI at 49.07 is neutral, not below 30. However, the lower Bollinger Band at $2771.08 represents a key support level where oversold conditions could emerge if price breaks below.
Critical support for ETHUSD includes the lower Bollinger Band at $2771.08, the 50-day moving average at $3050.78, and the 200-day moving average at $3671.04. The year-to-date low of $1383.26 is far below current levels.
Disclaimer:
Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.
