Ethereum extended its selloff into January 31, falling sharply toward the $2,400 region after losing multiple technical levels in quick succession. On the daily chart, ETH dropped from the $2,700 area to near $2,400 , marking roughly a 10% decline in a short period. The move followed a failed stabilization attempt above $2,600, after which sellers accelerated momentum and pushed price through key horizontal support. Technically, Ethereum has broken below the $2,500–$2,550 demand zone, which previously acted as a pivot throughout January. The breakdown shifts former support into resistance, while expanding sell volume confirms strong participation on the downside. The daily RSI has moved toward oversold territory, reflecting stretched momentum. While such readings can precede short-term relief bounces, they do not confirm a structural bottom. So far, no clear bullish reversal pattern has formed on higher timeframes. January 31 Liquidations Accelerate the Move The drop coincided with a wave of liquidations across crypto derivatives markets. Leveraged long positions were flushed out as ETH lost $2,500, intensifying volatility and forcing additional market sells. Large liquidation clusters tend to create cascading effects, where each break of support triggers further forced exits. That dynamic appears to have played a major role in the speed of Ethereum’s decline toward $2,400. Analyst Flags $1,435 as Bearish Target In a post on X, crypto analyst Elja (@Eljaboom) warned that Ethereum could decline much deeper if the broader market structure continues weakening, outlining a potential move toward $1,435 in an extended bearish scenario. The projection highlights a possible macro correction toward prior higher-timeframe demand zones, should Ethereum fail to reclaim lost support levels in the coming sessions. While the $1,435 level represents a more aggressive downside outlook rather than an immediate target, the forecast reflects growing caution among technical analysts as market momentum deteriorates.
