Ethereum 20% Crash: Temporary Setback or a Buy Opportunity?
2025-02-03
Category: None

Hello, Traders!

Ethereum experienced a significant drop, plunging over 20% in just one day and hitting its lowest point since last August. 
ETH price found strong support at $2130 and I don’t expect further downfall beyond this level unless broader market conditions deteriorate.  

One of the key technical developments was Ethereum breaking the crucial $2800 support zone, which is a bearish signal for the continuation of the uptrend. 
However, a quick recovery above this level could reignite bullish momentum and bring buyers back into the market. W
atching how ETH reacts to this resistance will be crucial in the coming days.  

The main catalyst for this sell-off was Trump’s decision to impose tariffs on Canada, Mexico, and China, which triggered a broader risk-off sentiment in global markets. 
The crypto space, being highly sensitive to macroeconomic events, saw a sharp reaction, with Ethereum and other major altcoins suffering deep corrections.  

Despite the current bearish outlook, there is one major reason why Ethereum is likely to recover quickly — the upcoming Pectra upgrade, set to take place next month. 
Historically, ETH has seen strong rallies leading up to major network upgrades, and I expect a similar pattern to unfold this time. 
If the market stabilizes and sentiment shifts, Ethereum could reclaim lost ground and resume its long-term bullish trajectory.  

For now, the key levels to watch are $2130 as support and $2800 as resistance. 
A break above $2800 could signal a strong reversal, while failure to hold $2130 might open the door for deeper corrections

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