![\"Ethereum](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2025\/02\/ETHUSD_2025-02-03_11-37-33.png\")
<\/p>\nThe Ethereum price has dropped 18% in the last 24 hours to trade at $2,541 as of 3:20 a.m. EST on a 236% pump in trading volume to $79.8 billion.<\/p>\n
Despite the recent decline in the ETH price, there has been notable buying activity at these levels, signaling that investors are accumulating ETH with a long-term outlook. This surge in buying volume during the dip indicates strong support and hints at the potential for upward momentum once the market stabilizes.<\/p>\n
The sharp decline in the leading altcoin’s price comes after ETH broke below a bearish channel that had been in place for several weeks, triggering widespread panic among traders.<\/p>\n
Ethereum is now testing a major support zone between $2,500 and $2,400, a level that previously acted as a strong foundation for bullish reversals in November 2024. If buyers step in at this crucial area, ETH could stage a recovery toward $3,021 and possibly $3,533, which are key resistance levels.<\/p>\n
However, failure to hold above support could lead to a deeper sell-off, potentially dragging prices down to $2,000 or lower.<\/p>\n
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ETHUSD Analysis Source: TradingView<\/p>\n
Technical indicators suggest the Ethereum price might be due for a rebound. The Relative Strength Index (RSI) has dropped to 28.26, signaling oversold conditions. This shows that selling pressure could be in a phase of exhaustion, and a short-term bounce may be on the cards. However, traders will be watching closely for confirmation, as a move above the 30 RSI level would strengthen the case for a reversal.<\/p>\n
Ethereum now faces a critical moment, with traders assessing whether this major support zone will hold or give way to further downside. If buying momentum picks up, ETH could regain its footing and push toward resistance levels at $3,021 and $3,533.<\/p>\n
However, a break below $2,400 could open the door for an extended decline. Investors are advised to tread cautiously and watch for signals of a trend reversal in the upcoming days.<\/p>\n
Meanwhile, the viral new meme coin Catslap (SLAP)<\/a> has burned $1 million worth of tokens, reducing supply and potentially boosting price momentum for the popular Slap-to-Earn crypto. A total of 1,196,558,367.83 SLAP tokens, valued at over $1.5 million, have been burned so far. Token burns increase scarcity, which is crucial for driving up value and could lead to price surges if demand levels remain the same or increase.<\/p>\n Catslap is the token behind a viral web game where players earn crypto by slapping cultural icons. Recently, the Slapdrop contest distributed a $100,000 prize pool, and players began collecting SLAP rewards in mid-January.<\/p>\n It's done. We just burnt $1,000,000 of $SLAP<\/a>https:\/\/t.co\/grFgQzV4ej<\/a> pic.twitter.com\/iMG1HkF0Ri<\/a><\/p>\n — Catslap (@CatSlapToken) January 31, 2025<\/a><\/p><\/blockquote>\n\n