Published: February 2, 2026
Ethereum price today suffered one of its sharpest single-day declines of 2026, falling 9.84% to a low of $2,428.77 before partial recovery attempts. The move pushed ETH’s market capitalization down to approximately $293.14 billion , reflecting broad altcoin weakness as Bitcoin tested sub-$80,000 levels and total crypto market cap compressed toward $2.66 trillion.
The drop was not isolated: ETH underperformed Bitcoin on a relative basis (ETH/BTC ratio hit fresh lows), while futures liquidations across the sector exceeded $2.2 billion in 24 hours — with Ethereum accounting for roughly $961 million (~44%) of the total wipeout according to Coinglass and exchange reports. This article provides a comprehensive breakdown of the drivers, technical structure, on-chain behavior, institutional flow context, sentiment indicators, and practical trading considerations for ETH in the current environment.
Price Action Timeline – February 1, 2026 Key Moves
| Time (UTC) | ETH Price Range | Change | Key Trigger / Volume Note |
|---|---|---|---|
| Feb 1, 00:00–06:00 Asia | $2,680 → $2,580 | -3.7% | Weekend carry-over + thin liquidity |
| 06:00–12:00 Asia/US overlap | $2,580 → $2,460 | -4.7% | Leverage flush begins; $961M liquidation spike |
| 12:00–18:00 US session | $2,460 → $2,428.77 (low) | -1.3% (from session open) | Macro headlines + algorithmic selling |
| Feb 1 close → Feb 2 early | $2,428.77 → ~$2,480–$2,510 | +2.1% from low | Dip-buyers emerge; short covering |
The **$2,428.77** print marked ETH’s lowest level since early-to-mid December 2025 and triggered one of the largest single-day liquidation volumes for the asset in recent memory.
Primary Drivers of Ethereum’s 9.84% Decline
The drop resulted from a classic convergence of macro, institutional and technical pressures:
- Broader Crypto Risk-Off Cascade
Bitcoin’s breakdown below $80,000 dragged altcoins lower. ETH — with higher beta to BTC — amplified the move. Total market cap compression toward $2.66T removed broad bid support. - Futures Liquidation Spike
Ethereum accounted for $961 million (~44%) of the $2.2 billion total crypto futures liquidations on Feb 1. Long positions dominated (~80–85%), reflecting late-cycle euphoria being washed out during Asia/US overlap when liquidity is thinnest. - Macro Liquidity Squeeze
The Federal Reserve’s January 28 hold at 3.50–3.75% (Powell: “not in a hurry to cut”) continued to pressure risk assets. Higher real yields and a rebounding US Dollar Index (DXY above 96) increased the opportunity cost of holding non-yielding altcoins like ETH. - Institutional Rebalancing & ETF Divergence
While Bitcoin ETFs continued bleeding (cumulative multi-billion outflows since mid-January), Ethereum ETFs showed selective resilience earlier in the week. However, the overall risk-off mood overwhelmed this divergence on Feb 1. - Technical Breakdown Confirmation
ETH lost the $2,550–$2,600 cluster (prior support) → triggered algorithmic selling and stop cascades. The move aligned with Bitcoin’s own Death Cross widening and macro bearish signals.
Technical Levels & Sentiment Indicators (ETH/USD – Feb 2 Early)
Current ~$2,480–$2,510 (partial bounce from $2,428.77 low)
- Immediate Support: $2,400–$2,420 (intraday low cluster + psychological round)
- Critical Support: $2,300–$2,350 (Nov–Dec 2025 swing zone + 0.618 Fib retracement from 2025 high)
- Next Major Support: $2,150–$2,200 (200-week MA area if deeper correction unfolds)
- Immediate Resistance: $2,600–$2,650 (prior breakout / failed support)
- RSI (Daily): ~38–42 → oversold, historically strong bounce zone
- Funding Rate: Negative across major perps → short-term bearish sentiment
ETH/BTC ratio hit fresh cycle lows → altcoin underperformance typical of risk-off deleveraging phases.
Trading Strategies & Positioning on Tapbit
- Sign Up on Tapbit (0% maker fees)
- Deposit USDT or JPY via bank transfer / P2P
- Capitulation dip buy: DCA ETH/USDT on pullbacks toward $2,400–$2,420 (high-volume exhaustion zone)
- Relief rally play: Long ETH/USDT perpetuals on confirmed reclaim of $2,600–$2,650 (20–50x leverage, isolated margin)
- Macro hedge: Long XAU/USDT perpetuals if risk-off sentiment intensifies
- Risk control: Max 1–2% account risk per trade; trailing stops below $2,300
FAQs – Ethereum 9.84% Drop February 1, 2026
Why did Ethereum drop 9.84% to $2,428.77 on February 1?
Broader crypto risk-off cascade (Bitcoin below $80k), $961M ETH futures liquidations (~44% of $2.2B total), Fed “higher-for-longer” liquidity squeeze, and macro/geopolitical uncertainty drove the move.
Is $2,400 the next major support for ETH?
Yes — $2,400–$2,420 aligns with psychological round + intraday capitulation zone. Holding here would signal potential local bottom; break below opens $2,300–$2,350.
How does Ethereum compare to Bitcoin in this decline?
ETH underperformed BTC (higher beta) and ETH/BTC ratio hit fresh cycle lows — typical altcoin behavior during risk-off deleveraging phases.
Should I buy Ethereum after the dip?
$2,400–$2,420 offers favorable risk/reward for staged DCA entries if conviction is high. Confirmation above $2,600–$2,650 signals relief rally; below $2,300 risks deeper test toward $2,150–$2,200.
Conclusion & Near-Term Outlook for Ethereum
Ethereum’s 9.84% plunge to $2,428.77 on February 1, 2026 — amid $961 million in futures liquidations and a total crypto market cap compression toward $2.66 trillion — reflects a classic risk-off deleveraging event amplified by macro caution (Fed pause), institutional rebalancing (persistent BTC ETF outflows), and weekend/early-week thin liquidity. Technicals show $2,400–$2,420 as the immediate capitulation zone, with $2,300–$2,350 as the next major support cluster. While short-term pressure remains elevated, oversold RSI (~38–42), extreme fear readings, and continued long-term holder accumulation suggest the move may be nearing exhaustion.
Trade Ethereum dips & volatility on Tapbit:
Disclaimer: Cryptocurrency trading involves significant risk of loss. Prices are highly volatile and can change rapidly. Liquidation events and technical patterns do not guarantee future results. This article is for informational purposes only and does not constitute investment advice. Always conduct your own research (DYOR) and never invest more than you can afford to lose completely.
