Ethereum bleeds 20% amid market turmoil, but analysts see rebound potential to $2,700

Ethereum has suffered a sharp decline, plunging nearly 20% in the last 24 hours and currently trading around $2,500.

Ethereum (ETH) price has dropped below the critical $3,000 support level, down to around $2500, marking one of its most severe sell-offs in recent years. This downturn follows Trump’s decision to introduce 25% tariffs on Canada, Mexico, and China, sparking the broader financial markets uncertainty.

Given crypto’s correlation with the traditional financial markets, ETH and other digital assets have followed suit.

You might also like: XRP, SOL prices tank as over $2b wiped from crypto market after tariffs announced by Trump

Coinglass data suggests that panic selling among whales has contributed to the crash. Large Ethereum holders have offloaded significant amounts, triggering a cascading wave of liquidations.

Crypto trader MaxBecauseBTC told his 66K followers on X that this was the biggest Ethereum liquidation event in over two years “with the most negative funding,” comparing it with the March 2020 COVID crash. He added that “those that stick around will be rewarded.”

Largest liquidation event on $ETH in the past 2+ years with the most negative funding… most comparable event to this was March 2020 Covid Crash.

I believe those that stick around will be rewarded. Most will not stick around. Defining moment for many. We all go through it. pic.twitter.com/hmZRGuGJAo

— Max (@MaxBecauseBTC) February 3, 2025

MaxBecauseBTC isn’t alone in his optimism. Felix Hartmann, founder of Hartmann Capital, said in a post on X that the recent downturn was the result of “forced selling” and that “the prices may be dislocated.”

$2.1bn liquidated in 24 hours.

Good chance this is a near term capitulation. Don’t know about the long term trend, but for now, this was a lot of forced selling and priced may be dislocated.

— Felix Hartmann (@FelixOHartmann) February 3, 2025

In a similar vein, Mechanism Capital partner Andrew Kang suggested ETH may be oversold and could recover to $2,700.

Bounce to $2700

— Andrew Kang (@Rewkang) February 3, 2025

You might also like: Crypto crash wipes out $2.2B—Worse than FTX and LUNA

Source