Ethereum news

ENS Labs announced it will not develop its app-specific Namechain Layer 2 and will launch ENSv2 exclusively on Ethereum mainnet, citing lower gas costs and the platform's faster L1 scaling. The decision follows Vitalik Buterin's recent shift away from a rollup-centric scaling roadmap; Ethereum's base layer now handles more traffic while L2s have struggled to decentralize. ENSv2 will add hierarchical registries and L2 interoperability, using lessons from Namechain to improve cross-chain name registration and simplify user experience.

Ethereum fell below $2,000 on Feb. 6 after co‑founder Vitalik Buterin and other whales sold millions of ETH, adding to a market rout driven by leverage unwinding, ETF outflows and macro risk‑off. Buterin’s 6,183‑ETH sale, part of a pre‑announced fund‑rollout, was modest relative to daily volume but amplified narrative fear. The crash stemmed from heavy liquidations, record‑level selling, and institutional withdrawals of about $2.5 billion from US spot ETH ETFs. While individual whale moves cannot alone break the price, they reinforce a self‑fulfilling cycle that pushes smaller traders to exit, deepening the decline.

Coinbase's crypto-backed loan product suffered $170 million in collateral liquidations last week as Bitcoin slid 17% and Ethereum 26%, with 2,000 users losing almost $90 million on Thursday alone. The product, launched last year, has now originated $1.8 billion in loans; Coinbase says it alerts users every 30 minutes and over-collateralizes positions, but the losses underscore the risks of integrating DeFi into its 'everything exchange' strategy.

Ethereum fell almost 29% in the last week, dropping below $2,000 to levels last seen nine months ago. On‑chain data shows rising realized losses over $1.2 billion in 24 hours and net outflows from long‑term holders, indicating widespread panic selling. Despite the slide, technical indicators suggest a potential reversal: ETH sits above $1,796 support, MFI is below 20, and oversold conditions may trigger a short‑term rally that could bring the price back above $2,000 and restore confidence.

Ethereum Foundation post‑quantum lead Thomas Coratger explained the network’s plan to counter quantum computing, targeting a 2030 launch of post‑quantum resistant consensus and noting how AI is accelerating both defensive and offensive research. Coratger warned that bridges and DeFi oracles are especially vulnerable, potentially causing cascading failures across the crypto ecosystem, and outlined a roadmap, risk assessment, and user migration strategy to address the looming quantum threat.

Ether fell 30 % in the last week, breaking below the $2,000 mark for the first time since May 2025 and reaching a 9‑month low of $1,740 before recovering to $1,900. The drop coincided with a 20 % weekly decline in global crypto market cap to $2.23 trillion. Large on‑chain liquidations ($400 million in 24 hours) and $1.1 billion in net outflows from US spot Ethereum ETFs have added selling pressure, while major holders like Trend Research and co‑founder Vitalik Buterin have also sold, tightening the downward bias. Technical analysis shows loss of the 200‑week SMA and $2,000 psychological support, with chart patterns pointing to a possible bottom around $1,400–$1,385. On‑chain liquidation zones at $1,500, $1,300 and $1,000 could act as magnets, with a further support near $1,200.

Trend Research has sold more than 400,000 ETH, moving 411,075 coins to Binance since the start of the month, as the price dropped nearly 30% and its liquidation threshold approached. The Hong Kong‑based firm, linked to Jack Yi, faced liquidation levels between $1,698 and $1,562 and said it would keep a bullish stance while managing risk, after accumulating ETH via borrowing on Aave.

$2.6 billion of Bitcoin and Ethereum options expire today, with about $2.2 billion on BTC and $419 million on ETH. Prices are below their max‑pain levels, and put‑to‑call ratios of 0.59 (BTC) and 0.93 (ETH) suggest sellers could profit if prices stay flat, while directional traders face potential losses. Bitcoin’s implied volatility has jumped to 100%, doubling since the year’s start, and institutional hedging is tightening. The 08:00 UTC expiry could reset dealer flows and trigger a short‑term volatility spike as hedges unwind.

BitMine shares fell 11% to a seven‑month low as unrealized Ethereum losses reach about $8 billion. The firm holds 4.3 million ETH (≈$8.4 bn) and its treasury strategy announced in July has left it with large paper losses as ETH trades near $1,930. Chairman Tom Lee said the downturn is normal and remains convinced ETH is the future of finance, even as the firm targets holding 5% of circulating supply.

ETHZilla Corp. announced it has bought 95 manufactured home loans for $4.7 million and will tokenize the portfolio on an Ethereum Layer‑2 network. The tokenized asset will provide on‑chain tracking, automated cash‑flow distribution, and an estimated annualized yield of 10.36 %, slated to launch on Liquidity.io in late February or early March. The deal follows ETHZilla’s shift from treasury management to a real‑world‑asset tokenization platform, building on prior moves such as tokenizing aircraft engines and a stake in Zippy Loans. The company also created a subsidiary, ETHZilla Modular Mortgage LLC, to support the initiative.