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Ethereum weakens after Bitcoin plunge, downside risks build

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Ethereum bear
Ethereum bear
  • Ethereum price is trading inside a huge channel on the monthly chart.
  • Bitcoin’s crash to $60,000  dragged ETH to its intraday lows.
  • After falling to lows of $1,748, ETH risks another leg down.

Ethereum’s price hovers above $1,960 as of writing on February 6, 2026.

This follows a sharp downturn in the past 24 hours, with the top altcoin crashing to lows of $1,700 amid broader market turbulence.

Bitcoin’s crash to $60,000, before rebounding to $67,000, dragged ETH to its intraday lows.

All the top altcoins, including Solana, BNB and XRP, fell sharply amid the bloodbath.

Ethereum price recap

Ethereum fell below $1,800 on Thursday, marking its weakest level since mid-2025 as heavy selling pressure intensified.

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The decline followed a sharp drop in Bitcoin to around $60,000, which sent shockwaves through the broader crypto market.

Although prices have since recovered above $1,900, continued ETF outflows and a prevailing risk-off environment suggest bullish momentum remains fragile.

Ethereum is down more than 29% over the past week and about 40% over the past month, underscoring the depth of the recent sell-off.

ETH price prediction: could bears target $1,000 next?

Although bulls are targeting a move back above $2,000, the monthly chart points to a fragile price structure.

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The chart paints a massive range with $4,900 forming the top established during the past bear cycle.

At the lower end, the parallel channel suggests potential downside toward the $1,000–$1,200 zone.

At present, the $1,800–$1,900 area aligns with support levels seen in April and May 2025, which were tested after ETH retraced from highs of around $4,100 in December 2024.

This overlap reinforces the zone’s importance in determining near-term price direction.

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Ethereum Price Chart
Ethereum price chart by TradingView

Analysts see this as a critical support zone, but if sellers breach it, it could give way to a downturn to levels untested since Ethereum’s 2022 bear market bottom.

As such, bulls must eye a notable bounce above $2,000. If this happens, the next targets lie in the $2,250-$2,700 range.

However, a breakdown below $1,800 risks testing $1,700 again.

This week’s breakdown aligns with a similar breakdown in March-April 2025, which put prices beneath a key uptrend line formed since the bullish flip in April 2020 after the COVID crash.

With bears having touched the mark already amid current bearish conditions, the picture isn’t in favour of bulls.

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A revisit could open up a path to the multi-year demand reload zone around $1,250-$1,000. This area represents untapped liquidity from the 2022 lows.

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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