Zinger Key Points
- Ethereum’s price declines amid growing whale transactions and significant ETH Spot ETF inflows.
- Traders predict continued volatility, with $2,700 as a critical support level to maintain bullish sentiment.
- Get Wall Street's Hottest Chart Every Morning
Ethereum ETH/USD has seen a 10% drop in price over the past seven days, even as large investors remain active in the market.
What Happened: World Liberty Financial, the Trump-related DeFi project, now holds 70,000 ETH, worth $224 million, at a current loss of around $36.7 million.
The firm increased its ETH holdings last week after previously owning 45,405 ETH.
1inch's Investment Fund made a notable purchase of 7,289 ETH, highlighting continued interest from institutional investors in the altcoin.
| Cryptocurrency | Price | Market Cap | 24-Hour Trend | 7-Day Trend |
| Ethereum ETH/USD | $2,759.14 | $332.5 billion | -7% | -10.3% |
| Bitcoin BTC/USD | $101,419 | $2.01 trillion | +3.4% | +1.97% |
| XRP XRP/USD | $2.77 | $16.1 billion | +3.5% | -5% |
Trader Notes: Crypto analyst Ali Martinez observed that Ethereum is forming a head-and-shoulders pattern, suggesting that it must hold the $2,700 level to preserve its bullish structure.
Martinez remains optimistic, predicting that ETH could eventually rise to $7,000 if the key level holds.
Trader Daan Crypto Trades pointed out that Ethereum has experienced a pattern similar to last August's price drop, where a failed breakout led to a 35-40% decline.
The recent downturn was triggered by external factors, such as the yen carry trade and ongoing tariff discussions, but it built on existing weaknesses within the market.
Unlike last year, however, Bitcoin has shown more resilience.
Daan expects more volatility ahead but not another extended period of range-bound price action
MaxBecauseBTC highlighted Ethereum's largest liquidation event in over two years, noting extreme negative funding levels similar to the March 2020 COVID crash.
While the trader believes those who can weather the storm will see long-term rewards, he warns that most traders may not hold through this period of uncertainty.
Statistics: IntoTheBlock data shows Ethereum's large transaction volume surged by 72.4%, with daily active addresses increasing by 8.1%.
Exchange netflows also spiked by nearly 200%, while transactions greater than $100,000 grew from 5,487 to 8,334 in just one day.
Coinglass data reveals that Ethereum's long liquidations amounted to $319.6 million, while short liquidations reached $133.8 million, marking a significant spike to record levels.
SoSoValue reports spot ETF seeing a $27.8 million net inflow on Jan.31, reflecting continued institutional interest in ETH.
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