Ethereum Plummets 12%: Could $2,600 Be the Next Target?
Generally, Ethereum has been experiencing a pretty sharp decline lately, leaving me wondering if a further slide to $2,600 could be coming. Normally, after it fails to hold above $3,400, the crypto tumbles below critical support, sparking concerns about its short-term path, which is kinda worrying.
Current Market Snapshot: ETH Struggles Below $3,000
Currently, Ethereum trades around $2,960, which is about a 12% drop over the past week, and that’s a big deal. Usually, trading volume surges past $31 billion in the last 24 hours, while derivatives volume jumps 40% to $71.75 billion, which is a lot. Open interest in ETH futures fell 5%, meaning many traders are closing positions rather than opening new ones, and that’s a bearish sign.
Key Resistance and Support Levels in Focus
Obviously, the slump started when ETH couldn’t stay above the $3,400 resistance, and that was a big mistake. Analyst Kamran Asghar said the rejection hit an “optimal trade entry (OTE) selling area,” which is a zone sellers love, and they took advantage of it. After that, ETH broke beneath an ascending support line, pushing the $2,600 target back into view, and now I’m getting a little nervous.
Interestingly, buying interest shows up lower, and that’s a good sign. Heatmaps show strong demand around $2,800-$2,850, with bigger buy walls at $2,500-$2,600, and that could be a game-changer. Kriptoholder noted these could act as solid support if the price keeps falling, and I think they might be right. “The order book heatmap transparently reveals the true liquidity depth below the price action,” they said, hinting big players might step in, and that would be awesome.
ETF Outflows and Exchange Reserves Add Bearish Pressure
Apparently, US spot ETH ETFs saw net outflows of $229.95 million on Jan 20, ending a five-day inflow streak and lining up with the price drop, which is not good. That shift suggests some investors are taking profits or cutting exposure, and that’s a bearish sign.
Meanwhile, ETH held on centralized exchanges fell to its lowest level since 2016 – 16.2 million ETH, per CryptoQuant’s Arab Chain, and that’s a big deal. Binance’s holdings slipped from 4.168 million to 4.0 million tokens since early January, and those numbers may mean long-term holders are moving to self-custody, easing immediate selling pressure, which is a good thing.
Staking Hits Record Highs, Yet Price Stays Under Pressure
Fortunately, staking keeps thriving, and that’s a positive sign. The total ETH staked hit an all-time high, locking more coins than ever, and that squeezes circulating supply, which could help the price once the sell-off eases. Still, short-term sentiment stays bearish, and that’s a concern.
Long-Term Outlook: Bullish Patterns and Ambitious Targets
Generally, some analysts spot an inverse head-and-shoulders forming, which, if confirmed, might push ETH toward a $4,400 breakout, and that would be amazing. It would need the crypto to regain footing and break above key resistance first, which is a tough task.
Looking farther out, Bitcoinsensus wonders if ETH could ever hit $10,000-$15,000, based on historic cycles and lower returns, and that’s a pretty ambitious target. Those numbers are wild, but they show optimism still lives among certain investors, and that’s a good thing.
What’s Next for Ethereum?
Obviously, the near-term outlook stays hazy, and that’s a concern. Heavy selling, ETF outflows, and testing of the $2,600 zone keep traders on edge, and that’s not good. If $2,600 breaks, $2,500 or lower could become the next targets, and that would be a big drop.
However, strong buy walls and dropping exchange reserves hint a rebound might happen if sentiment flips, and that would be awesome. I’ll keep watching the technical levels closely, because volatility is still the name of the game, and you never know what’s gonna happen next.
