Ethereum price enters high-risk zone below $2.3K as network activity surges – further decline ahead?

Ethereum price fell toward $2,200 after another wave of selling, with rising volume and weak momentum keeping traders on the defensive.

At the time of writing, Ethereum was trading at $2,264, a 2.8% decline over the previous day, further sinking into a vulnerable range. This drop comes after a steep sell-off that has caused ETH to drop across all significant time periods. 

Ethereum (ETH) has fluctuated between $2,120 and $3,034 over the last week, but the trend has been decisively downward. In total, ETH has lost 24% in the past seven days and 28% over the last month, now sitting roughly 54% below its all-time high of $4,946 reached in August 2025.

Trading activity has increased as prices dropped. Ethereum recorded $47.25 billion in spot trading volume over the last 24 hours, up 21%.

Derivatives markets showed a similar pattern. CoinGlass data shows futures volume climbed 38% to $105 billion, while open interest slipped 1.18% to $27 billion. This suggests traders are trimming exposure rather than adding fresh leverage.

On-chain activity raises caution flags

On-chain data has drawn fresh attention. A Feb. 4 report from CryptoQuant contributor CryptoOnchain showed Ethereum’s transfer count, measured using a 14-day moving average, rising to about 1.17 million.

These kinds of spikes have often surfaced during times of increased market stress. Both Jan. 2018 and May 2021 saw similar spikes, which were followed by steep price drops.

While higher transaction counts can signal strong network use, sudden spikes are also linked to large-scale repositioning and distribution during uncertain market phases.

The current data does not confirm a market top. Still, it places Ethereum in a zone where downside risk has historically increased, especially when price momentum is already weak.

Ethereum price technical analysis

From a chart perspective, Ethereum remains locked in a daily downtrend. Lower highs and lower lows have continued to form since the price failed near the $4,000 region. No clear break in structure has yet been established.

Repeated pullbacks from the mid-Bollinger Band have reinforced selling pressure. Every rebound attempt has so far run into resistance near the 20-day moving average, with upside momentum fading quickly after each move. This pattern suggests that sellers are still in charge of short-term price movement.

Additionally, Ethereum has fallen below the lower Bollinger Band, indicating an increase in downside volatility. Rather than marking exhaustion, the move suggests that selling pressure is still active within the broader downtrend.

The loss of the $3,000 level has further weakened the structure. Although the price briefly returned above the zone, ETH was unable to hold, and the zone flipped into resistance. Momentum is still muted with the daily relative strength index in the low 30s and minimal signs of a long-term recovery.

A modest recovery could develop if selling slows and price holds above the $2,150–$2,200 area.  However, a more meaningful shift in sentiment would require ETH to reclaim $2,300 and move toward the $2,700–$2,800 range. Without a daily close above those levels, upside attempts are likely to remain shallow and short-lived.