Ethereum at risk of falling below $2,000? As retail investors sell off, Tom Lee goes all in
Ethereum at risk of falling below $2,000? As retail investors sell off, Tom Lee goes all in
Ethereum has reached a critical inflection point as aggressive institutional dip buying flows into the market amid a life-or-death struggle that threatens the psychological $2,000 level.
According to global cryptocurrency market tracker CoinMarketCap on February 10 (local time), Ethereum (ETH) is trading around $2,034.50, down 3.91% from 24 hours earlier, showing extreme price volatility. During intraday trading, Ethereum briefly tested the $2,000 support level, heightening investor anxiety, but later staged a modest rebound and entered a consolidation phase. The sharp decline is largely attributed to heavy selling by retail investors as overall market sentiment across the crypto market remains stuck in a state of extreme fear.
On-chain data indicates that Ethereum’s current trajectory is the most tense since the major market crash of August 2025. Inflows of Ethereum into major exchanges have reached a six-month high, increasing potential selling pressure, while surging active addresses and transaction volumes reflect the market’s turmoil. Experts note that short-term holders are entering a capitulation phase, liquidating assets at a loss, and caution that liquidity risks in the market should not be overlooked.
In contrast to retail panic selling, deep-pocketed investors such as BitMine, led by chairman Tom Lee, are treating the downturn in Ethereum as a buying opportunity. Over the past week, BitMine reportedly invested about $82.85 million to acquire an additional 40,613 ETH, demonstrating strong confidence in Ethereum’s long-term value. Such aggressive institutional moves are providing downside support for prices and suggest a structural reshaping of the market.
Technical indicators leave room for Ethereum to attempt a technical rebound as it may soon emerge from oversold territory. The relative strength index has fallen to around 30, signaling entry into a potential bottom zone, while the moving average convergence divergence indicator is also showing signs of a slowing downtrend. However, until the key resistance level at $2,500 is reclaimed, a prolonged range-bound movement may persist, and if the $2,000 support breaks, the risk of further cascading liquidations remains.
Participants in the cryptocurrency market are formulating their strategies while closely watching Bitcoin’s price recovery and changes in Ethereum’s actual network utilization. Amid ongoing macroeconomic uncertainty, whether Ethereum can prove its resilience as a core infrastructure of the digital asset ecosystem will be crucial for a future price recovery. Whether the current correction becomes a healthy reset for a long-term uptrend or a precursor to further declines will largely depend on the market’s response this week.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on its content. The information provided should be interpreted solely for informational purposes.*
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