Ethereum fell to a low of $2,156 on Monday, the 2nd of February. AMBCrypto had reported that the short-term momentum was strongly bearish, as was the market-wide sentiment across the crypto industry.
At the same time, the higher timeframe price charts also suggested that it was a good buying opportunity.
Ethereum was trading within a weekly bullish swing structure established during the mid-2025 rally.
In recent hours, it nearly retested the 78.6% retracement level at $2,147. Therefore, the higher timeframe bullish bias was still alive.
Institutions such as Bitmine [BMNR] have also relentlessly bought Ethereum [ETH]. The company was sitting on a $6.38 billion unrealized loss, a 38.91% drawdown on its investments.
AMBCrypto noted that just last week, Bitmine added another 40,000 ETH, worth nearly $90 million, to its treasury. They were prepared to “buy the dip” in a difficult 2026, asserted Tom Lee.
Assessing the short-term ETH price action
Source: ETH/USDT on TradingView
While the long-term bias has reason to be bullish, the lower timeframe bias was firmly bearish for swing traders as of press time.
A price bounce toward $2.7k would likely yield the next selling opportunity.
Such a bounce is expected because the H4 RSI made a bullish divergence within the oversold territory. Marked in orange, this divergence was followed by a 6.58% price bounce to $2,395 within 12 hours.
It is possible that the bounce would go toward $2,600 in the coming days.
Traders’ call to action – Wait…!
A bounce is possible, but it is too risky to bet on.
Scalp traders can use the H4 structure to inform their LTF biases if looking for longs. For other traders, ETH was neither at a feasible spot to go short, nor was it exhibiting an inclination for a sizeable bounce.
Source: CoinGlass
As the Liquidation Heatmap showed, a bounce above $2,400 would be the first trigger for short sellers.
A liquidity sweep of $2,450 could be followed by a price plunge. Alternatively, a bounce toward $2,700-$2,800 can not be ruled out.
This zone was both a liquidity cluster and a key Fibonacci retracement area. Therefore, traders can wait for a few days for ETH to show its hand before looking to go short.
A rally beyond the local high at $3,041 will flip the H4 bias bullishly.
Final Thoughts
- Ethereum has the potential for a dramatic rebound after the intense bearishness in recent months.
- That rebound will not materialize in the coming days, and traders can remain bearishly biased this week.
