Ethereum has fallen sharply toward $2,400, with its decline outpacing many other major cryptocurrencies as broader market sentiment weakens. Around $2.5 billion in leveraged crypto positions were liquidated in a single day and large holders have begun trimming exposure, pressuring ETH below key support. Technical indicators now highlight a strong downtrend, with traders watching whether $2,250 and $2,100 emerge as the next major downside targets or if a rebound toward the $2,600–$2,800 area can develop.

Crypto ETFs saw a $1.7 billion weekly net outflow, the biggest since mid-November, with cumulative three-month outflows at $2.6 billion. Bitcoin products led with about $1.1 billion redeemed, followed by Ethereum at $630 million and XRP at $18 million. On 29 January and the next day, outflows reached $817 million and $510 million, marking four straight redemption days.

On 1 February 2026, Michael Saylor said that Strategy would not be liquidated on its Bitcoin position even in an extreme scenario where BTC falls to $1. The company holds 712,647 BTC at an average purchase price of $76,038, leaving it about 1.8% above breakeven with Bitcoin trading near the upper $70,000 range. Its exposure is mainly backed by long-dated convertible debt rather than margin-based funding, which Saylor argues keeps forced-selling risk low despite the current market correction.

Bitcoin traded near $78,000 after a 6–7% drop in the past 24 hours, with intraday lows around $76,000–$77,000. Gold and silver also retreated, and over $1 billion in crypto leverage was liquidated. Key areas to watch are $86,000 on the upside and $75,800 to $71,600 below.

On 31 January, Monero rose to $500.87, up 8.72% from the day's open, before broader selling in Bitcoin pushed XMR back toward $450 support. The analysis noted market sentiment was fearful with a Fear and Greed reading of 18, while BTC neared its $74k weekly swing low. Liquidity clusters sit at $400–$415 and $500, suggesting traders may wait for a sweep.

On 1 February 2026, Tom Lee’s Ethereum-focused vehicle BitMine was estimated to be sitting on roughly $6 billion in unrealized losses from its more than 4 million ETH position. The firm’s average acquisition cost is around $3,800 per ETH, while the asset is trading near $2,300, reflecting about a 40% drawdown. Despite the pressure, BitMine continues to accumulate and stake Ethereum, with the position reportedly unencumbered by margin calls or forced liquidations.

XRP fell 9% in 2026 and touched $1.60, its first nine‑month low, after breaking the $1.80 support. According to Alphractal, a 0.998 correlation to Bitcoin and an 87% altcoin‑BTC linkage keep price action tethered to BTC swings. Despite SoSoValue's noted ETF inflows and RWA TVL rising 11% to $235 million, gains remain muted.

On February 1, 2026, fresh data on India's crypto tax regime for FY 2024–25 showed ₹511.83 crore collected as TDS, with a significant divergence between tax deducted and actual liability. Nearly half of investors ended the year with net losses, yet many still owed or paid tax on gains that could not be offset. Ahead of the Union Budget 2026, industry participants are urging reforms to the 30% tax, loss set-off rules, and the 1% TDS on virtual digital asset trades.