#加密市场回调 Ethereum price drops to $2200, market panic spreads—why this level determines the next bull run?

Ethereum experienced a heavy blow over the weekend, with the price falling 17.38% from the Saturday (January 31) opening price of $2,702. Overall market sentiment is extremely fearful.
According to CoinMarketCap data, Bitcoin (BTC) has decreased by 4.56% in 24 hours and 12.7% over the past week. The Fear and Greed Index has fallen to a bleak 15. Ethereum futures traders are facing $266.53 million in liquidation, with long positions totaling $204.38 million. However, now might be a good time to buy more Ethereum.

Exploring Ethereum Opportunities
From the weekly chart, Ethereum shows a bullish wave pattern. This structure was formed during Ethereum’s price increase from $1,383 to $4,955 in 2025. Digital asset reserves have accumulated Ethereum worth billions of dollars.
Institutional investment continues to flow in. Bitmine [BMNR] has increased its holdings by 132,813 ETH over the past month. Notably, their position faces a… 42.5% retracement.
From a technical perspective, the recent decline from $4,900 has approached the 78.6% retracement level at $2,147. In the coming days or weeks, the price is expected to briefly dip below this level to seek liquidity. Afterwards, the price may start to rebound.
AMBCrypto reports that investors are viewing this decline as… a discount.

Is now a good time to buy?
If the possibility of Ethereum dropping to $1,300 per coin doesn’t worry you, long-term holders might consider buying more Ethereum.
The weekly chart shows a bullish trend in the wave structure, which would only be invalidated if the weekly closing price falls below $1,383.
The daily chart indicates that bears are in control. The OBV indicator has repeatedly hit new lows, and the DMI indicator also shows a strong downward trend.

Trader’s Call—Assess Risks and Wait
Short-term traders usually consider going long only when the price rebounds near $2,000–$2,200. Trying to bottom fish or predict the market bottom could severely damage your portfolio. Breaking below $2,000 should be seen as an early warning sign. This suggests that bulls lack the willingness to rebound, making a drop to $1,300 more likely.
Final words
Although Ethereum has suffered heavy losses in recent months, its weekly wave structure remains bullish. Short-term traders should wait for strong market signals before considering buying.