Canada Wire — Crypto & Markets Edition
05 February 2026
Ethereum (ETH) is facing a period of intense volatility as the second-largest cryptocurrency by market cap struggles to maintain its footing above critical support levels. As of 05 February 2026, Ether is trading at approximately $1,964.54 USD, marking a significant decline of over 24% within the last seven days.
The current market downturn has seen ETH slip below the psychological $2,000 threshold, a move that analysts suggest confirms a deterioration in short-term market structure. This bearish momentum follows a peak in August 2025, with the current price sitting roughly 45% below those all-time highs. Market observers are now eyeing the $1,730 level as the next potential floor if the $2,100 resistance-turned-support cannot be reclaimed.
Market Dynamics and Institutional Activity
Despite the “paper losses” mounting across the sector, institutional players remain active. Bitmine Immersion Technologies (BMNR) recently announced it has increased its holdings to 4.285 million ETH tokens, now controlling approximately 3.55% of the total supply. The firm reportedly added nearly $100 million in ETH during the recent plunge, signaling a long-term bullish bet amidst the immediate carnage.
Meanwhile, Ethereum co-founder Vitalik Buterin has made headlines by moving approximately $29 million worth of ETH to fund the Ethereum Foundation. This comes as the Foundation enters what Buterin describes as a period of “mild austerity,” focusing on a refined growth roadmap and fiscal responsibility as the network matures.
Historical Context and 2026 Outlook
The current turbulence stands in stark contrast to the project’s humble beginnings. Originally described in a 2013 whitepaper by Buterin and launched in 2015, Ethereum was envisioned as a “decentralized world computer.” Over the last decade, it has evolved from a technical experiment into a foundational layer for global economic and social systems.
While the immediate forecast remains cautious, some analysts predict that 2026 will ultimately be the “Year of Ethereum.” Proponents point to upcoming crypto market legislation and the potential for ETH to close the dominance gap with Bitcoin (BTC), which recently broke the $80,000 mark. However, for a recovery to $5,000 to materialize, the network will likely need to see a significant shift in macroeconomic conditions and a resurgence in decentralized application (dApp) activity.
All figures in USD unless otherwise noted. Market data is live as of 05 February 2026.