Ethereum faced a tough weekend as its price fell by 17.38% from Saturday’s (the 31st of January) open at $$2,702.

ETH was trading at $2,219 at the time of writing, and the market-wide sentiment was extremely fearful.

Bitcoin [BTC] was down 4.56% in 24 hours and 12.7% in a week, according to CoinMarketCap data. The Fear and Greed index was at an abysmal 15.

Ethereum futures traders have faced $266.53 million in liquidations, with $204.38 million being long. Yet, this might be the time to buy more Ethereun.

Crazy? Perhaps, but the reward is great, and the setup’s invalidation is clearly defined.

Exploring the Ethereum opportunity

Source: ETH/USD on TradingView

On the weekly chart, Ethereum has a bullish swing structure. This was set in place during the rally from $1,383 to $4,955 in 2025, when digital asset treasuries accumulated billions of dollars worth of ETH.

Institutional investment was still incoming. Bitmine [BMNR] has added 132,813 ETH to its holdings over the past month. It should be noted that their position was facing a 42.5% drawdown.

Going back to the technical perspective, the retracement from $4.9k in recent months has nearly reached the 78.6% retracement level at $2,147.

In the coming days or weeks, a brief dive below this level to hunt down liquidity is expected. A bullish recovery could begin thereafter.

AMBCrypto reported that investors were already treating the drop as a discount.

Is now the right time to buy?

Source: ETH/USD on TradingView

Absolutely!

Provided a potential drop to $1,300 per ETH does not faze you. Long-term holders can look to keep buying more Ethereum.

The weekly chart showed that the swing structure was bullish, and a weekly session close below $1,383 is needed to flip this around.

The daily chart showed bears were dominant. The OBV was making new lows, and the DMI signaled a strong downtrend in progress.

Traders’ call to action- Assess risk and wait

Swing traders would want to see bullish strength around $2,000-$2,200 before looking to go long. Catching knives, or trying to time the market bottom, can lead to a bleeding portfolio.

A drop below $2,000 should be taken as an early warning signal. Such a scenario would reflect that bulls had little appetite for a reversal, making a drop toward $1,300 more likely.

Final Thoughts

• The weekly swing structure of Ethereum was bullish, despite the heavy losses in recent months.
• Swing traders should wait for signs of strength before looking to buy.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.