The beginning of February has proven challenging for Ethereum investors. Significant selling pressure has gripped the market for the second-largest cryptocurrency, driven by a wave of liquidations and broader market uncertainty. As the price corrects, the developer community is already looking ahead to the planned “Glamsterdam” upgrade and the longer-term technological roadmap for 2026.
A Wave of Liquidations Accelerates Decline
Market weakness is clearly reflected in current valuations. Ethereum is trading at $2,818.82, following a sharp 6.25% drop recorded on Friday. Analysts point to substantial liquidations in the derivatives market as the primary catalyst for this move.
A forced unwinding of long positions, in particular, accelerated the downward momentum within an already fragile environment. This combination of technical selling and a general “risk-off” sentiment among investors triggered the most severe pullback since October 2025. Billions in market capitalization were erased during this corrective phase.
Technical Roadmap Offers a Long-Term View
Despite the price volatility, the network’s technical development continues unabated. The focus remains on the protocol upgrade codenamed “Glamsterdam,” announced for the first half of 2026. This update aims to optimize transaction processing to make the network faster and more cost-efficient. A key component is the implementation of “Proposer-Builder Separation” (PBS). Later in the year, a subsequent upgrade dubbed “Hegota” is expected to follow, promising enhancements in data pruning and censorship resistance.
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Co-founder Vitalik Buterin has also set a philosophical tone for the year, declaring 2026 the year of “digital self-sovereignty.” The core idea is to reduce reliance on centralized structures and solidify Ethereum as a robust foundation for decentralized applications and AI interactions.
Institutional Holders Grapple with Unrealized Losses
The current market dynamics are also putting professional investors to the test. Reports indicate that large institutional addresses, such as “BitMine,” are sitting on significant unrealized losses, with current prices trading well below their average entry levels. While the decision by these major players to hold their positions despite paper losses suggests a long-term strategy, it also underscores the current stress test for so-called “smart money.”
The immediate market trajectory will likely depend on whether the crucial support zone around $2,400 can hold in the event of further weakness. Additionally, investors are awaiting concrete dates for the “Glamsterdam” testnet launch, which could provide fresh positive momentum for the asset.
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