ETH is not falling; it is being squeezed in the liquidation zone: the chart is just a façade.

ETH is not falling; it is being squeezed in the liquidation zone.

Crypto.com API shows that as of 2026-02-04 19:08 (SGT), the latest price of ETH/USD is 2,233, with a 24-hour range of 2,347→2,107 and a 24-hour change of -2.13%.

The market interprets this as 'pattern deterioration', but I am more concerned about: the leverage structure is pushing the price into a narrow corridor.

The intuition behind derivative data is quite simple: there is a stack of over $1 billion in long liquidation strength in the area about 3.9% below the current price level; in the area about 6.0% above, there is a stack of nearly $800 million in short liquidation strength.

What does this mean? It means the price does not need to 'collapse', it just needs to 'move to' trigger liquidation which will amplify the volatility for you.

Technical patterns are certainly important: multiple analyses explain this round of pullback as 'extension of a reversal pattern', pointing the next downward space towards a deeper retracement zone.

But the pattern is just language; liquidation is the fuel.

If the funding rate continues to decline and open interest rises instead, what you see is not 'bottom-fishing capital', but 'thicker fuses'.

Conversely, if the price remains unchanged while open interest continuously declines, that is the real signal of deleveraging happening.

You may not believe in the charts, but you cannot ignore the liquidation zone: it determines the market's next breath, whether up or down.