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Ethereum ($ETH) endured a turbulent week, plunging to a massive low of $2,065 amid geopolitical trade war tensions before rebounding as investors capitalized on discounted prices, currently down 2.1% over the last day.
Trade War Fears Rock $ETH
Ethereum opened the week at $3,200-$3,400 but crashed to a significant low of $2,065 on Feb. 3 as U.S. trade tariffs triggered a crypto-wide selloff. Prices rebounded sharply to $2,780 by Feb. 4, driven by whale accumulation and record ether exchange-traded fund (ETF) volumes totaling $1.5 billion. Despite the recovery, $ETH remains 10% below its January close, reflecting persistent macroeconomic uncertainty.
Data from Intotheblock and Santiment reveals that $1 billion in ether left exchanges on Feb. 3, the largest single-day outflow since January 2024, signaling institutional accumulation. $ETH faces immediate resistance at $2,850, with a breakout above $3,303 needed to confirm a bullish reversal. Support rests at $2,350–$2,400, aligning with a long-term trendline dating to 2022.
A sustained drop below $2,300 could invalidate the bullish thesis, but technical indicators like the falling wedge pattern hint at upside potential toward $3,500. Mixed signals dominate: While exchange outflows and ETF activity reflect optimism, trade war escalations and regulatory uncertainty loom. The U.S.-China tariff spat risks prolonged volatility, with analysts warning of persistent pain for risk-on assets like $ETH.
Derivatives markets show bearish positioning, with negative funding rates for major altcoins. March’s Pectra upgrade and potential Ethereum ETF approvals could reignite bullish momentum. Meanwhile, $ETH’s correlation with Bitcoin’s post-halving cycle and historical February gains (average 17%) offer hope for a rebound.
Ethereum’s rollercoaster week underscores its sensitivity to macro risks and institutional dynamics. While short-term headwinds persist, long-term fundamentals—network upgrades, ETF prospects, and DeFi adoption—anchor optimism. Traders await clarity on the U.S.-China tariff effect and technical breakouts to dictate $ETH’s next move.