Ethereum Slides Toward $2,400 as Crypto Bears Tighten Grip

Ethereum’s price action is flashing red flags as it tumbles toward the $2,400 mark, a level that traders are now eyeing as a critical battleground. After failing to hold above key moving averages, ETH’s recent drop has crypto institutions and retail traders alike wondering if the bottom is in or if the market will test much lower levels near $1,600-$1,800. Meanwhile, a whale group dubbed the “7 Siblings” has been quietly accumulating, hinting at a potential floor. But with daily on-chain attacks and a broader crypto bear market acknowledged by 25% of institutions, the path forward looks rocky.

Ethereum’s price has slid sharply after failing to maintain support above significant moving averages, falling toward the $2,400 level as reported on February 1 by u.today and blockonomi.com. Technical analysts warn that ETH could drop further into the $1,600-$1,800 zone before finding sustainable buyer support. This bearish outlook coincides with a broader institutional admission that crypto is in a bear market, with a Coinbase Institutional and Glassnode survey showing 1 in 4 institutions acknowledging the downturn.

Adding to the drama, Ethereum faces a surge in address poisoning attacks, with scammers exploiting transaction histories to drain over $12 million in a single incident. The network reportedly sees over 1 million such attacks daily, adding a layer of operational risk and uncertainty.

On the positive side, a whale group known as the “7 Siblings” has been accumulating ETH, suggesting some smart money sees value near current levels. However, the overall market sentiment remains cautious.

Ethereum’s slide fits into a broader crypto market downturn that has persisted since late 2025. Despite strong network metrics like rising on-chain activity, prices have failed to hold, reflecting a disconnect between fundamentals and market sentiment. Solana, another major altcoin, is also in a multi-year bearish pattern despite soaring network usage, highlighting that price action is not always aligned with on-chain strength.

The crypto bear market is now widely acknowledged by institutional investors, marking a shift from denial to acceptance. This psychological transition often precedes capitulation or a prolonged bottoming process.

The ongoing token unlocks scheduled for February 6, including Hyperliquid and Berachain, may add selling pressure and liquidity concerns. Meanwhile, macroeconomic uncertainties and tightening regulatory scrutiny keep the risk premium elevated.

Ethereum’s technical breakdown below key moving averages is a classic sign of waning bullish momentum. The $2,400 level is a psychological and technical support zone, but failure to hold here could open the door to a deeper correction toward $1,600-$1,800. This aligns with technical analyst warnings and the bearish swing structures seen on daily charts.

The “7 Siblings” whale accumulation is a double-edged sword. While it signals some confidence among sophisticated players, it also suggests that the market is bottom-fishing rather than rallying. The presence of large buyers waiting near current levels can create a floor but also traps for weaker hands.

The surge in address poisoning attacks adds a unique operational risk. With over 1 million daily attempts and a $12 million theft from a single victim, network security concerns could weigh on sentiment and deter new inflows.

Overall, the market is pricing in a prolonged bear phase with intermittent rallies. Retail traders should be wary of chasing bounces, while institutions may be positioning for a longer-term accumulation phase.

Strykr Watch: Strykr Watch

Ethereum’s immediate support is at $2,400, with the next critical zone between $1,600 and $1,800 as highlighted by technical analysts. Resistance sits near the 50-day moving average around $2,600, and the 200-day moving average near $2,800.

RSI on the daily chart is in oversold territory, suggesting a potential for short-term relief rallies but no guarantee of sustained recovery. The 4-hour chart shows a bearish swing structure, reinforcing the downtrend.

Volume has picked up on sell-offs, indicating strong conviction among sellers. Watch for any volume spikes on rebounds as a sign of potential short covering.

Fibonacci retracements from the 2025 highs place the 61.8% retracement near $1,750, aligning with the lower support zone.

The primary risk is a breakdown below $2,400, which could trigger a cascade of stop-loss orders and accelerate the selloff toward $1,600. A failure to hold these levels would confirm the bear market’s depth.

Operational risks from ongoing address poisoning attacks could escalate, undermining confidence in Ethereum’s security and slowing adoption.

Regulatory developments remain a wildcard. Any harsh crackdowns or negative rulings could exacerbate the downtrend.

On the upside, a sudden influx of institutional buying or positive network upgrades could spark a relief rally, but this seems unlikely in the near term.

Aggressive traders might consider short positions below $2,400 targeting $1,800 with stops above $2,600. The risk/reward here favors the bears given current momentum.

For those looking to accumulate, the $1,600-$1,800 zone offers a potential smart accumulation area with tight stops below $1,550.

Options traders could explore buying puts or protective collars to hedge existing long exposure.

Watching whale activity and on-chain metrics can provide clues for entry and exit timing.

Strykr Take

Ethereum’s price action is a textbook bear market setup with critical support at $2,400 under siege. The “7 Siblings” accumulation hints at a floor but does not guarantee a reversal. Traders should prepare for continued volatility and a possible test of the $1,600-$1,800 range. Patience and discipline are paramount.

Strykr Pulse 45/100. Bearish momentum dominates with pockets of accumulation. Threat Level 4/5. Security risks and macro uncertainty weigh heavily.

• ETH approaching $2,400 support

• Whale accumulation near current levels

• Surge in address poisoning attacks

• Breakdown below $2,400 triggers deeper selloff

• Escalating network security breaches

• Regulatory clampdowns

• Short ETH below $2,400 targeting $1,800

• Accumulate $1,600-$1,800 with tight stops

• Use options for hedging