Ether must hold $2.7K to avoid deeper correction, analysts say

Ether’s price must remain above $2,700 to prevent further downside, market analysts told Cointelegraph following the cryptocurrency’s recent recovery.

Ether (ETH) staged a recovery of over 10% in the 24 hours leading up to the time of writing on Feb. 4, trading above $2,800 after falling to a three-month low of $2,150 on Feb. 3, according to Cointelegraph Markets Pro data.

Still, ETH may risk significant downside if it falls below the $2,700 mark, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen:

“We had a red candle on ETH/USD, with reports of a liquidation surge. Here are the two ETH price levels I am looking at (the top and bottom of the pre-November trading range): $2,700. Is it really broken? If yes, the next level is $2,300.”

The cryptocurrency market took a significant hit after US President Donald Trump signed an executive order imposing import tariffs on goods from China, Canada and Mexico, igniting concerns over a potential global trade war.

However, positive developments during negotiations between the countries may alleviate investor anxiety, according to Nansen’s Barthere:

“Markets still think of tariffs as a negotiation strategy and that we will get a deal. […] This is the most probable scenario, but there is still asymmetry to the downside in case of disappointment on the progress of these talks.”

Trump is set to meet with Chinese President Xi Jinping in the “next couple of days,” according to White House Press Secretary Karoline Leavitt.

The meeting is aimed at resolving trade tensions and avoiding a full-scale trade war, which may have significant implications for global and cryptocurrency markets.

President Trump recently spoke with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau and agreed to a 30-day delay on US tariffs against the two countries.

Related: Bitcoin risks correction below $90K on US-China trade war concerns

Ether correction could trigger almost $500 million of leveraged long liquidations

ETH holds a significant support level at the $2,700 mark, which could trigger more downside volatility during a correction.

A potential ETH correction below $2,700 would trigger over $494 million worth of cumulative leveraged short liquidations across all exchanges, CoinGlass data shows.

Leveraged ETH long liquidations would surpass $1 billion below $2,650.

Related: Crypto market liquidations likely reached $10B — Bybit CEO

While broader crypto market volatility could potentially result in a deeper correction, the Ethereum network’s fundamental value will drive Ether’s long-term price appreciation, according to Marcin Kazmierczak, co-founder and chief operating officer of RedStone:

“While ETH’s price may fluctuate with broader market sentiment, its fundamental value proposition remains remarkably strong. The network has evolved into a sophisticated financial ecosystem, processing over $30 billion in daily transactions across its layer-2 networks.”

“Ethereum’s long-term trajectory is more about ecosystem growth than temporary market reactions,” he added.

Meanwhile, Ether investor sentiment remains positive after the US president’s son Eric Trump told his 5.4 million X followers that “it’s a great time to add ETH.”

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