Ethereum fails at $2.5K: How $466M in liquidations crushed ETH
On February 5th, Ethereum (ETH) experienced a significant price drop, falling 14.96% from $2,148 to $1,826. This decline triggered $466.4 million in liquidations, with the majority being long positions. Market sentiment was at "extreme fear," with the Fear and Greed Index hitting a low of 11. ETH's performance against Bitcoin reached a three-year low, and it fell below the key psychological level of $2,000.
Technical analysis showed strong bearish momentum, with ETH breaking below the crucial $2,500 demand zone and the $2,100 weekly swing point. The RSI entered oversold territory, and the On-Balance Volume (OBV) indicated heavy selling pressure. Liquidation heatmaps revealed that the recent drop wiped out significant liquidity around $2,000, with potential magnetic zones further south near $1,500.
Despite the possibility of a bounce to $2,400 or even $2,700-$2,900, traders are advised to remain cautious. The lack of bullish response at key levels suggests further downside risk, and any short-term recovery may be an opportunity to sell before another bearish move.
ambcrypto02/06 21:01