Ethereum price experienced a sharp decline this week, dropping 10% after failing to maintain levels above $2,880. The cryptocurrency fell to a low of $2,680 before stabilizing around $2,730.
The price movement follows a rejection at the $3,050 resistance level. ETH broke below the $2,820 support zone and continued falling through $2,750.
Currently, Ethereum is trading below the $2,800 mark and the 100-hour Simple Moving Average. A steep bearish trend line has formed with resistance at $2,820 on the hourly chart.
The past 24 hours saw $416.8 million in liquidations across Ethereum positions. Long liquidations accounted for $391 million of this total, according to Coinglass data.
Bulls are now defending the $2,700 support level. The price briefly broke below this level before recovering slightly. The 23.6% Fibonacci retracement level from the recent decline provides minimal support.
Developer Griff Green announced the launch of The DAO Security Fund this week. The fund will use over $200 million in unclaimed funds from the 2016 DAO hack to support Ethereum security initiatives.
TheDAO is back. BULLISH
A decade later, we’re opening a new chapter.
TheDAO Security Fund: activating 75,000+ ETH to strengthen Ethereum security.https://t.co/VV3cH313TE pic.twitter.com/1Sf3g7xUWv
— thedao.fund (@thedaofund) January 29, 2026
These funds were originally set aside to refund victims of the infamous 2016 hack. The value has grown from $6 million in 2016 to over $200 million today.
Green stated the fund will support security improvements including wallet user experience, incident response, Layer 2 and bridge security, and core protocol security.
The Ethereum Foundation’s “Trillion Dollar Security” initiative will guide funding rounds. Distribution will occur through quadratic funding, retroactive funding, and rank-choice voting mechanisms.
Immediate resistance for Ethereum sits at $2,765, followed by the key $2,820 level where the bearish trend line is positioned. The next major resistance is at $2,860.
$ETH remains in this seemingly endless range.
There's not much to do in the middle.
Either wait for a proper breakout above $3350 or for a dip to the range low.
Remember, money is made in the waiting! pic.twitter.com/gJy0rZlrHY
— Sjuul | AltCryptoGems (@AltCryptoGems) January 29, 2026
A clear move above $2,860 could push the price toward $2,900 and potentially $3,000. However, if bulls fail to defend $2,700, the next support level is at $2,680.
A break below $2,680 could send Ethereum toward $2,625, which previously served as support during November’s price decline. Further downside targets include $2,550 and $2,500.
The Relative Strength Index is trending downward below neutral levels. The Stochastic Oscillator is in oversold territory, indicating strong bearish momentum but also suggesting a potential short-term reversal.
The fund will stake 70,500 ETH from an Extrabalance contract and 4,600 ETH from DAO and ETH tokens. Curators include Ethereum co-founder Vitalik Buterin, MetaMask’s Taylor Monahan, and Dappnode’s Pol Lanski.
The 2016 DAO hack resulted in a hard fork that split Ethereum into the main chain and Ethereum Classic. The DAO had raised about $150 million worth of ETH before the exploit occurred.
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