Ethereum continues to trade under visible short-term pressure, with technical indicators, derivatives data, and spot flows indicating a cautious posture in the market. On the 4 hour chart, $ETH/USD remains structurally weak after losing a major Fibonacci support level. In addition to chart signals, recent disclosures from Ethereum leadership have added another layer of market focus.
Bearish Structure Defines Short-Term Price Action
Ethereum is trading firmly below the Ichimoku cloud, confirming that the bearish momentum continues. The Tenka Line and the Reference Line are trending downward and continue to suppress any upward movement attempts. Therefore, any pullback faces immediate selling pressure rather than sustained follow-through.
Immediate support is located near $2,682, consistent with a major Fibonacci base. A break below this level could expose the $2,600 to $2,550 demand zone. On the positive side, $ETH To stabilize the price movement, $2,852 would need to be recovered.
$ETH Price dynamics (Source: Trading View)
Moreover, a break above $2,957 would help neutralize selling pressure. However, the $3,042 to $3,128 zone remains a key reversal area for a broader bullish shift.
Directional indicators also support the bearish bias. ADX continues to rise above 30, indicating the strength of the trend. In addition, the negative directional index exceeds the positive index, confirming the seller's advantage.
Derivatives and spot data reflecting risk management
Ethereum open interest shows an expansion and reset pattern that highlights changes in leverage demand. Open interest rose amid a strong rebound, reflecting aggressive long positions.
However, a period of instability was followed by a sharp decline, indicating a liquidation rather than a stable distribution. Notably, open interest is currently stable near $38 billion, suggesting that traders remain active but more disciplined.
Spot flow data reinforces this cautious stance. In recent months, net outflows have dominated, with spikes exceeding $400 million in several cases. Inflows appear during short-term rebounds but cannot be sustained. As a result, large holders appear to be selling on strength rather than actively accumulating assets.
Development spending adds long-term context
Over the next five years, the Ethereum Foundation will enter a period of mild fiscal austerity that will allow it to achieve two goals simultaneously:
1. Delivering an aggressive roadmap that secures Ethereum's position as the world's computer with uncompromising performance and scalability…
— vitalik.eth (@VitalikButerin) January 30, 2026
Amid market uncertainty, Ethereum co-founder Vitalik Buterin revealed plans to allocate $16,384. $ETHvalued at nearly $43 million towards ecosystem development. He outlined a strategy focused on full-stack openness, security, and verifiability. Additionally, the Ethereum Foundation has entered a phase of tightening spending to sustain long-term scaling efforts.
Ethereum technical outlook ($ETH): Continue to focus on major levels in February
Ethereum’s price structure remains under short-term pressure, with key levels clearly defined as increased volatility.
On the upside, $2,850 and $2,957 stand out as immediate hurdles. A sustained break above this zone could open the door to $3,040 and the broader $3,120 resistance band that marks trend reversal territory. However, sellers continue to aggressively defend these standards.
On the downside, $2,682 remains an important support to watch. A complete breakdown below this level is likely to be exposed. $ETH into the $2,600-$2,550 demand zone. The broader structure still reflects falling highs and weak momentum, continuing to correct the bull market for now.
Will Ethereum go up?
Ethereum’s near-term direction will depend on whether buyers can confidently defend $2,682 and recover $2,957. Compression below resistance signals more volatility ahead.
If inflows strengthen and leverage remains controlled, $ETH There is a possibility that it will try to recover towards $3,040. However, if the price is unable to hold $2,682, there is a risk of further downside. For now, Ethereum remains at a critical inflection point.
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