Ethereum Drops Below $2,800 Support as Market Faces New Challenges

3 mins mins

Key Insights:

Ethereum struggles below $2,800, with the $2,500-$2,600 support range crucial for potential rebound.
$11.22B in shorts at risk if Ethereum rises 30%, while $10.5B in longs face liquidation.
Institutional outflows and large position liquidations add to the token’s market volatility.

613eacfc 04ba 4aa7 85fe 1c555c88d786 — *Ethereum Drops Below $2,800 Support as Market Faces New Challenges*

Ethereum has recently fallen below its $2,800 support level, leading many traders and analysts to reassess the outlook for the cryptocurrency. As the price of Ethereum struggles to maintain momentum, the market faces several challenges that could impact its short-term performance.

The cryptoccurency is currently trading at $2,731.05, as traders are on high alert for any further drops or potential reversals. With the Cryptocurrency down 6.87% in the past 24 hours, the pressure on the cryptocurrency market is growing.

Ethereum Faces Strong Resistance Below $2,800

The token’s price dropping below the $2,800 support level has raised concerns among traders. According to TedPillows, the next major support zone for the token is between $2,500 and $2,600. This level is crucial for any potential bounce in the price. The analyst noted, “ETFs and DATs have accumulated in this zone”. He believes this could hold in the short term as the market waits for signs of recovery.

The drop in price follows a notable outflow of $155.7 million from Ethereum ETFs, with BlackRock contributing $54.9 million in sales. This suggests that large institutional players are also adjusting their positions in response to current market conditions.

$ETH ETF outflow of $155,700,000 🔴 yesterday.

BlackRock sold $54,900,000 in Ethereum. pic.twitter.com/4o8XsVtICB
— Ted (@TedPillows) January 30, 2026

Traders are closely watching for any reversal or stabilization at the $2,500-$2,600 support area.

Shorts and Longs at Risk if Ethereum Moves Sharply

Another key concern for traders is the current position of both long and short contracts in Ethereum. According to recent reports, around $11.22 billion in short positions could be liquidated if the token experiences a 30% pump.

$11,220,000,000 in shorts will get liquidated if $ETH pumps 30%.

$10,500,000,000 in longs will get liquidated if Ethereum dumps 30%. pic.twitter.com/WY3TQg9tm2
— Ted (@TedPillows) January 29, 2026

Conversely, if the price of the asset falls by 30%, approximately $10.5 billion in long positions could be liquidated. These large positions show how volatile the market has become, with traders facing potential risks in either direction.

Ethereum’s price volatility is contributing to a sense of uncertainty in the market. As traders wait for a clear direction, the risk of significant liquidations remains high. This can lead to sharp price movements in the short term, making it difficult to predict where the coin’s price will go next.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.