Ether experienced a flash crash-style dip to $2,080 on February 3, marking its lowest level since January 2024, as weekend bearish volatility carried over into the new trading session. If the downtrend continues, Ethereum could potentially close with its lowest daily candle since November 6, 2024. The largest altcoin had previously attempted a bullish breakout on January 31, but instead faced a sharp 40% decline from its January 31 high to its February 3 low. Additionally, Ether’s open interest (OI) plummeted by 28% in less than three days, dropping from $31.2 billion to $22.6 billion. This suggests that futures traders were aggressively liquidated, which could continue influencing price action as traders assess reducing exposure on short-term rebounds.
At the time of writing, ETH was trading at $2,806.
ETH broke through the psychological support level of $3,000 and plunged nearly 29%, reaching a low of $2,125. The asset tested the key support at $2,150 and then saw a sharp bounce back up to $2,921. ETH will face strong resistance at $3,000, and for a rally to occur, it will need to break through and sustain above this resistance level. Meanwhile, $2,750 and $2,500 will serve as significant support levels for the asset.
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2 |
| $2,500 | $2,750 | ETH | $3,000 | $3,500 |
Unravel everything that you need for your crypto journey via ZebPay blogs. Get started today and join 6 million+ registered users on ZebPay!
