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The Ethereum price has dropped 4% in the past 24 hours, slipping to around $2,744, as selling pressure increases, and Veteran trader Peter Brandt has [...]The Ethereum price has dropped 4% in the past 24 hours, slipping to around $2,744, as selling pressure increases, and Veteran trader Peter Brandt has [...]

Ethereum Slides Below Key Support as Peter Brandt Warns of Further Downside

Author: Insidebitcoins

Source: Insidebitcoins

2026/01/31 11:02

4 min read

The Ethereum price has dropped 4% in the past 24 hours, slipping to around $2,744, as selling pressure increases, and Veteran trader Peter Brandt has warned that Ethereum’s decline may not be finished yet.

Brandt points to a breakdown from a symmetrical triangle on the 24-hour Ethereum chart, a pattern he describes as a well-known bearish signal that often leads to further losses when confirmed. According to him, the breakdown indicates that sellers remain in control, especially in an environment of thin market liquidity and continued capital outflows.

These conditions make it harder for Ethereum to recover, as even small sell orders can push prices lower. Brandt adds that the lack of strong buying interest means rallies are likely to be short-lived unless market conditions improve. He also places Ethereum’s weakness within a broader market context.

Brandt highlights a right-angled broadening pattern on the total cryptocurrency market capitalization chart. Following the recent market crash, the total crypto market value has already dropped to around $2.82 trillion. He warns that if this pattern continues, total market capitalization could fall toward $2.41 trillion.

ETF Outflows and Weak Sentiment Deepen Bearish Pressure

This would represent an additional 15–20% decline from current levels and could keep major cryptocurrencies such as Bitcoin, Ethereum, and XRP under continued pressure. Ethereum’s poor technical outlook matches weakening sentiment across the wider crypto market. The second-largest cryptocurrency has lost more than 46% of its value over the past few months, reflecting both global macro uncertainty and challenges specific to the crypto sector.

One of the biggest factors hurting sentiment has been steady outflows from spot Ethereum exchange-traded funds, which suggest that institutional investors are becoming more cautious. On Thursday alone, spot ETH ETFs recorded nearly $156 million in net outflows.

Fidelity’s FETH saw the largest withdrawals at $59.2 million, followed by BlackRock’s ETHA with $54.9 million. Grayscale’s ETHE and ETH products also experienced significant outflows of $13.1 million and $26.5 million, respectively. These continued redemptions reinforce concerns that institutional demand for Ethereum remains weak in the near term.

Ethereum Price Breaks Out Below Key Support

Ethereum (ETH/USD) on the 4-hour timeframe is showing a clear shift in market structure, with bearish momentum now dominating after a decisive breakdown below key support. Price action highlights a failed recovery attempt that transitioned into a strong bearish continuation.

Initially, ETH formed a rounded bottom pattern, signaling a gradual accumulation phase. This structure allowed price to rally toward the upper resistance zone around the $3,300–$3,350 region, which had previously acted as a strong supply area. However, repeated rejections from this resistance zone indicated weak bullish follow-through, suggesting that sellers remained firmly in control.

Following the rejection, ETH broke below the major support level near $2,950–$3,000, which had acted as a demand zone during prior consolidation. This breakdown is technically significant, as former support has now flipped into resistance. The move was impulsive, confirming a bearish breakout rather than a false move or liquidity sweep.

ETHUSD Chart Analysis. Source: Tradingview

Momentum indicators reinforce the bearish bias. The RSI (14) has dropped toward the lower range, hovering near oversold territory but without showing bullish divergence. This suggests that selling pressure remains active, and any short-term bounce could be corrective rather than trend-reversing. The RSI failing to reclaim the 50 midline further confirms bearish control.

Structurally, ETH is now forming lower highs and lower lows, a classic downtrend signal on the 4-hour chart. The bearish candle expansion following the support break also points to strong selling participation rather than weak retail-driven moves.

Looking ahead, the next key area to monitor lies around the $2,650–$2,700 region, which could act as a temporary demand zone or pause area. If this level fails to hold, downside risk may extend toward deeper liquidity zones below. On the upside, any recovery attempts are likely to face resistance near the broken $2,950–$3,000 support band.

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