Ethereum has stumbled into February with sharp losses, trading at $2,277.11 after a 4% daily drop and a steep 22% decline over the past week. The world’s second‑largest cryptocurrency is now at its lowest point since May 2025, as heavy liquidation events and risk‑off sentiment ripple across the broader market.
Market Pressure
Investors have rotated out of speculative assets, with hedges like silver seeing inflows amid global uncertainty. The sell‑off has triggered cascading liquidations in leveraged positions, amplifying downside pressure on Ethereum and other major tokens. Analysts note that the current downturn reflects not only crypto‑specific weakness but also broader macro caution, as traders seek safety in traditional assets.
Kalshi Forecasts
Adding to the bearish mood, traders on prediction market Kalshi are forecasting Ethereum could fall as low as $1,410 this year. The forecast highlights skepticism about ETH’s ability to sustain higher valuations in the face of tightening liquidity and regulatory headwinds. While some market participants remain optimistic about Ethereum’s long‑term role in tokenization and DeFi, short‑term sentiment has clearly shifted toward caution.
Kalshi’s pricing reflects expectations that volatility will remain elevated, with ETH potentially testing levels not seen since early 2023. For traders, the forecast serves as both a warning and a signal of where speculative sentiment is leaning.
Outlook
For now, the $2,200 zone is emerging as the last line of defense for Ethereum buyers. If demand and volume return, ETH could bounce back above this level and attempt to stabilize. But if selling pressure persists, a decisive break below $2,200 would likely open the door to a slide under $2,000, aligning with the bearish scenarios outlined by Kalshi traders.
