Ethereum’s price fell sharply by 12% in 24 hours to trade near $2,407.90, extending its weekly decline to over 18%. Technical charts indicate a break from a key trading channel and persistent selling pressure, though analysts note the longer-term uptrend could remain intact if crucial support levels hold.
Ethereum dropped sharply on January 31, falling 12% to $2,407.90 and extending its weekly losses to 18.47%. This decline followed repeated failures for the asset to hold the $3,000 price level.
TradingView data shows ETH decisively broke down from a descending channel that had contained its price between $3,000 and $3,400 since late 2025. Multiple recovery attempts were rejected near the channel’s upper boundary, confirming dominant selling pressure.
The short-term trend remains bearish, with rallies toward $2,600-$2,800 expected to face stiff resistance. A further decline could see the price test the $2,200 level, which corresponds to previous areas of low trading activity.
Momentum indicators reflect strong selling, with the 14-day Relative Strength Index reading about 25. Market analyst Leo Lanza stated that Ethereum is still in a long-term uptrend that began in March 2020.
“He says that the current correction could form a higher low if the price remains above the main trend line,” according to his analysis shared on X. Volume profile data indicates ETH is currently in a high-volume area where traders typically form positions.
In the bigger picture, Ethereum’s 2023-2024 uptrend formed higher highs and higher lows, with a peak near $5,000 in August 2025. The current correction aligns with common Fibonacci retracement levels of 0.5 to 0.618.
These levels are typical areas for buyer entry in an ongoing uptrend. The higher-timeframe structure suggests the long-term trend remains supported if the $2,350-$2,400 zone holds.
