Ether must hold $2.7K to avoid deeper correction, analysts say
2025-02-04
Category: None

Ether’s price must remain above $2,700 to prevent further downside, market analysts told Cointelegraph following the cryptocurrency’s recent recovery.
Ether ETHUSD staged a recovery of over 10% in the 24 hours leading up to the time of writing on Feb. 4, trading above $2,800 after falling to a three-month low of $2,150 on Feb. 3, according to Cointelegraph Markets Pro data.
Still, ETH may risk significant downside if it falls below the $2,700 mark, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen:
The cryptocurrency market took a significant hit after US President Donald Trump signed an executive order imposing import tariffs on goods from China, Canada and Mexico, igniting concerns over a potential global trade war.
However, positive developments during negotiations between the countries may alleviate investor anxiety, according to Nansen’s Barthere:
Trump is set to meet with Chinese President Xi Jinping in the “next couple of days,” according to White House Press Secretary Karoline Leavitt. 
The meeting is aimed at resolving trade tensions and avoiding a full-scale trade war, which may have significant implications for global and cryptocurrency markets.
President Trump recently spoke with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau and agreed to a 30-day delay on US tariffs against the two countries.
Ether correction could trigger almost $500 million of leveraged long liquidations
ETH holds a significant support level at the $2,700 mark, which could trigger more downside volatility during a correction.
A potential ETH correction below $2,700 would trigger over $494 million worth of cumulative leveraged short liquidations across all exchanges, CoinGlass data shows.
Leveraged ETH long liquidations would surpass $1 billion below $2,650.
While broader crypto market volatility could potentially result in a deeper correction, the Ethereum network’s fundamental value will drive Ether’s long-term price appreciation, according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone:
“Ethereum’s long-term trajectory is more about ecosystem growth than temporary market reactions,” he added.
Meanwhile, Ether investor sentiment remains positive after the US president’s son Eric Trump told his 5.4 million X followers that “it’s a great time to add ETH.”