Ethereum suffered a blow over the weekend, falling 17.38% from the opening price of $2,702 on Saturday (January 31).

As of the time of writing, ETH is trading at $2,219, and overall market sentiment is extremely fearful.

According to CoinMarketCap, Bitcoin (BTC) has dropped 4.56% in the last 24 hours and 12.7% over the past week. The fear and greed index has fallen to a bleak 15.

Ethereum futures traders faced liquidations of up to $266.53 million, with $204.38 million in long positions. However, now might be a good time to buy more Ethereum.

Crazy? Maybe, but the returns are huge, and the conditions for this setup to fail are clearly defined.

Exploring opportunities in Ethereum

From the weekly chart perspective, Ethereum presents a bullish volatility structure. This structure formed during the surge from $1383 to $4955 in 2025, when digital asset reserves accumulated Ethereum worth billions of dollars.

Institutional investment continues to flow in. Bitmine [BMNR] has increased its holdings by 132,813 ETH in the past month. Notably, their holdings once faced a 42.5% retracement.

From a technical perspective, the decline from $4900 in recent months has approached the 78.6% retracement level of $2147.

It is expected that in the coming days or weeks, the price will briefly drop below this level to seek liquidity. After that, the price may start to rebound.

AMBCrypto reports that investors have viewed this drop as a discount.

Is now a good time to buy?

Absolutely!

If the possibility of the Ethereum price dropping to $1300 doesn't worry you, long-term holders may consider buying more Ethereum.

The weekly chart shows that the volatility structure is bullish, requiring a weekly close below $1383 to reverse the situation.

The daily chart shows that bears are in control. The OBV indicator is making new lows, and the DMI indicator also indicates a strong downtrend is underway.

Call to action for traders—assess risks and wait

Short-term traders usually consider going long only when prices rebound to around $2000-$2200. Attempting to catch the bottom or predict the market bottom may lead to a severely impacted portfolio.

A drop below $2000 should be seen as an early warning signal. This situation indicates that bulls lack the will to rebound, making a drop to $1300 more likely.