Ethereum continues to trade below the critical $2,000 level, reflecting persistent market pressure as traders await a clearer directional catalyst. The inability to reclaim this psychological threshold has kept sentiment cautious, with volatility elevated and liquidity conditions still uncertain. While price action has stabilized somewhat after recent declines, the broader structure suggests the market is preparing for a decisive move that could define Ethereum’s short-term trajectory. Related Reading: Bitcoin Realized Losses Hit Luna Crash Levels — But Price Context Points To A Different Market Phase A recent CryptoQuant report provides important context, indicating that the Ethereum market has undergone one of its most prolonged periods of stress since mid-2021. According to the data, the 7-day simple moving average of long liquidations on Binance climbed to roughly 9,000 ETH on February 6, 2026. Because this figure represents a smoothed weekly average rather than a single-day spike, it signals sustained pressure rather than a brief liquidation cascade. This pattern implies that leveraged long positions have been unwound gradually over several days. Pointing to persistent deleveraging rather than a sudden capitulation event. Historically, extended liquidation phases can reset market leverage and reduce speculative excess, though they also tend to coincide with fragile sentiment. Whether this process ultimately stabilizes Ethereum or leads to further downside remains dependent on liquidity conditions and broader market demand. Sustained Liquidations Signal Derivatives Market Reset The CryptoQuant report further notes that Ethereum’s decline from the $3,000 region to the $2,000 range did not trigger any capitulation events. Instead, the market experienced a prolonged sequence of margin calls, with leveraged long positions gradually unwound over several consecutive days. This pattern reflects persistent stress in the derivatives market rather than a short-lived liquidation cascade. Indicating that traders faced sustained pressure as the price trended lower. From a historical standpoint, the intensity and duration of this liquidation phase appear to exceed those recorded during major capitulation periods of the 2022 bear market. Such extended liquidation activity typically signals a broad deleveraging cycle, where excessive speculative positioning is systematically cleared. This process often reshapes market structure by reducing leverage-driven volatility and restoring a more balanced risk environment. The implication is that Ethereum may have already undergone a significant leverage reset in recent weeks. Persistently elevated liquidation averages can sometimes precede seller exhaustion. Weaker market participants exit positions, and forced selling pressure gradually subsides. The durability of any recovery will likely depend on renewed spot demand and macro liquidity conditions. Also, investor confidence must return following this extended period of derivatives-driven stress. Related Reading: Long-Term Ethereum Holders Expand Positions While Market Faces Pressure: Rare Signal Emerges Ethereum Tests Long-Term Support: Weekly Structure Weakens Ethereum’s weekly chart shows increasing structural pressure after the loss of the $2,000 level, a threshold that previously acted as both psychological support and a key technical pivot. The recent breakdown places ETH below major trend-defining moving averages, suggesting weakening bullish momentum and a shift toward a more defensive market environment. Price action reflects a clear rejection from the $3,000 region earlier in the cycle. Followed by a sequence of lower highs that typically characterizes transitional or corrective phases. The latest decline also coincides with rising trading volume, often associated with distribution or leveraged position unwinding rather than organic accumulation. This dynamic reinforces the perception of ongoing market stress rather than stabilization. Related Reading: Bitcoin Drop Wipes Billions From Recent Buyers: New Whale Cost Basis Falls Toward $90K From a structural standpoint, the next meaningful support area appears around the mid-$1,500 to $1,700 zone, where previous consolidation and demand emerged in earlier phases. Holding above this range would help preserve the broader long-term bullish framework, even amid current weakness. A sustained break below it, however, could shift sentiment toward a deeper corrective cycle. Ethereum remains sensitive to macro liquidity conditions, derivatives positioning, and overall crypto market sentiment, with recovery dependent on renewed spot demand and stabilization above key technical levels. Featured image from ChatGPT, chart from TradingView.com
Ethereum has retraced to the $3,160 level following the highly anticipated FOMC meeting, where the Federal Reserve cut interest rates by 25 basis points. While rate cuts typically support risk assets, Jerome Powell’s comments added a new layer of uncertainty to the market. Related Reading: The Whale Who Can’t Stop Buying: BitcoinOG Scales Ethereum Long To $280M After Price Surge By openly acknowledging the risks of weaker growth paired with persistent inflation, Powell introduced the possibility of stagflation—a scenario that historically challenges both equities and crypto. As a result, sentiment across the market remains fragile, and investors are struggling to interpret what this macro shift could mean for Ethereum’s next move. Despite the volatility surrounding the decision, one major whale continues to act with conviction. According to Lookonchain, the Bitcoin OG who famously shorted the market during the October 10 crash is once again doubling down on his bullish Ethereum position. Instead of taking profits or reducing exposure after the recent rally, he has continued accumulating aggressively, signaling a strong belief in ETH’s medium-term trajectory even as broader sentiment turns cautious. Whale Position Ramps Up, But Risk Is Rising According to Lookonchain, the whale’s position has now surged to 120,094 ETH, valued at approximately $392.5 million. With a liquidation price at $2,234.69, this has become one of the largest and most aggressive long positions currently tracked on-chain. Such a massive allocation signals extreme conviction, especially coming from the same Bitcoin OG who successfully shorted the market during the October 10 crash. However, the scale of this bet also highlights how much risk is now concentrated in a single directional position. The liquidation price is a key concern. At $2,234, it sits nearly $1,000 below current levels, but in highly leveraged environments—especially during macro uncertainty—prices can retrace violently. Ethereum has already shown a tendency toward sharp intraday moves, and with funding rates rising and leverage across the market stretching to historical highs, even a moderate correction could trigger cascading liquidations. If ETH experiences a sudden spike in volatility due to shifting macro conditions, a negative reaction to the latest FOMC decision, or a broader market unwind, the whale’s position could come under significant pressure. While large whales often influence market sentiment, this setup illustrates how thin the margin for error has become. Related Reading: Why Ethereum’s Rally Isn’t Overheated – And Where Demand Must Grow Next ETH Testing Resistance While Momentum Weakens Ethereum has retraced to the $3,196 level after failing to hold above the $3,300 zone, signaling that bullish momentum is beginning to weaken. The daily chart shows ETH rejecting the red 200-day moving average, a key long-term trend indicator that has acted as resistance throughout the recent downtrend. Until ETH breaks and closes decisively above this level, the broader structure remains vulnerable. The 50-day moving average is still sloping downward, reflecting persistent selling pressure despite last week’s rebound. Meanwhile, the 100-day moving average sits well above the current price, reinforcing the heavy overhead resistance ETH must overcome to reestablish a bullish trend. Volume has also declined compared to the early December bounce, suggesting buyers are losing strength as price approaches major resistance levels. Related Reading: Bitcoin Exchange Reserves Fall To Lowest Levels on Record: The Bullish Signal Most Traders Are Missing Structurally, ETH remains in a mid-term downtrend, forming lower highs and lower lows since September. Although the recent push from the $2,800 region shows buyers defending key support, the rejection at $3,350 highlights that sellers are still in control at higher levels. If ETH fails to regain the 200-day moving average soon, a retest of the $3,050–$3,100 support range becomes likely. Conversely, a strong reclaim above $3,350 could open the door for a move toward $3,500, but the market will need renewed momentum to get there. Featured image from ChatGPT, chart from TradingView.com
After losing the $4,450-$4,500 area during the recent market downturn, Ethereum (ETH) is attempting to hold a crucial level as support. Some analysts suggest that the leading altcoin is poised to bounce soon as crypto treasury companies continue to bet on the cryptocurrency. Related Reading: Bitcoin Stuck In Neutral While Markets Roar — Analyst Explains Why Ethereum Eyes Rebound Amid $4,100 Retest On Monday, Ethereum’s price dropped around 7% during the largest liquidation event of the year so far. Notably, the crypto market saw more than $1.7 billion in leveraged positions liquidated over the past 24 hours, according to CoinGlass data. ETH led the losses with nearly $500 million in liquidations, followed by Bitcoin’s $284 million. This dragged the King of Altcoin’s price to the crucial $4,100 support for the first time since August, hitting a one-month low of $4,077. Daan Crypto Trades highlighted that today’s event was the largest nominal Ethereum liquidation since 2021, when the cryptocurrency’s price dropped around 45% in a single day. However, various market watchers noted that the price decline was relatively tame compared to previous liquidations of this scale. As the second-largest cryptocurrency dropped to the $4,100 support, some analysts suggested that Ethereum is gearing up for a rebound. Merlijn The Trader affirmed that ETH is “following the blueprint” to a five-digit target. Per the trader, the cryptocurrency rallied to its previous all-time high (ATH) of $4,800 after breaking out of a multi-year bullish pattern. Following its breakout from an Adam and Eve formation in 2021, the leading altcoin retested the level as support and consolidated around this area for three months before the next leg up. This time, Ethereum displays a new textbook setup with a multi-year descending triangle formation, which was broken out of last month and is currently being retested as support. According to the market watcher, ETH could see a 2021-like breakout toward the $10,000 barrier. Nonetheless, Ted Pillows asserted that the altcoin must hold the $4,100 area as support for a short-term bounce. “If this level is lost, Ethereum will drop towards the $3,700-$3,800 level,” the analyst warned. BitMine Holds 2% Of ETH Supply Despite the market downturn, corporations continue to bet on the second-largest cryptocurrency for their Digital Asset Treasury (DAT) strategies. BitMine, the second-largest crypto treasury, revealed that it has increased its ETH holdings to nearly 2.5 million tokens over the past week, as part of its goal to hold 5% of Ethereum’s total supply. BitMine now owns over 2% of the supply with 2,416,054 ETH, solidifying its position as the largest ETH Treasury in the world. According to the Monday announcement, the company now holds $11.4 billion in assets, including the 2.4 million ETH tokens, 192 Bitcoin (BTC), $175 million stake in Eightco Holdings for its “Moonshot” initiative, and unencumbered cash of $345 million. Additionally, the company is the 24th most traded stock in the US, with an average daily volume of $3.5 billion, according to 5-day average data from Fundstrat. Related Reading: Solana Faces Deadly Selling Pressure After 312,233 SOL Deposit Into Coinbase – Here’s The Value BitMine’s chairman, Thomas “Tom” Lee, stated that the company continues “to believe Ethereum is one of the biggest macro trades over the next 10-15 years,” adding that “Wall Street and AI moving onto the blockchain should lead to a greater transformation of today’s financial system. And the majority of this is taking place on Ethereum.” As of this writing, ETH is trading at $4,145, an 8% decline in the weekly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com