Ethereum is struggling to regain strength as its price remains stuck just below the crucial $2,000 level—a zone that once acted as support but now feels more like a barrier. While the asset has shown small signs of recovery, overall market signals suggest traders remain cautious, and momentum has yet to shift decisively in favor of buyers.
At the time of writing, Ethereum was trading around $1,981, posting a modest 1% gain over the past 24 hours. Over the last week, the price has moved within a narrow range between $1,907 and $2,098, highlighting a pause after weeks of heavy selling pressure.
However, the broader trend paints a more concerning picture. Over the past month alone, Ethereum has fallen roughly 40%. Even more striking, it now sits nearly 60% below its August 2025 all-time high of $4,946. This sharp correction has also been accompanied by declining market activity. Spot trading volume dropped to $22 billion in the last 24 hours, a 32% decrease compared to the previous session, signaling reduced participation from traders.
The derivatives market shows a similar pattern. According to data from CoinGlass, Ethereum futures volume declined by 5.7% to $38 billion, while open interest slipped 1.1% to $23 billion. When open interest decreases without significant price movement, it typically indicates traders are reducing risk exposure rather than preparing for a major move in either direction.
On-chain signals hint at a cooling phase
Despite the bearish trend, some on-chain indicators suggest the market may be approaching a potential bottom. Analytics firm Alphractal reported on Feb. 17 that Ethereum’s “Market Temperature” metric is nearing cold-zone levels. This indicator combines multiple data points, including MVRV Z-Score, RVT, and NUPL, to evaluate whether the asset is overvalued or undervalued.
Historically, when this metric approaches or drops below zero, it signals reduced speculation and calmer market conditions. Such phases often reset valuations and gradually attract long-term investors preparing for future growth.
Another report from CryptoQuant contributor CW8900 revealed that Ethereum whales are currently holding unrealized losses similar to those seen during previous market bottoms. Interestingly, these large holders have continued accumulating ETH and now control record-high balances without taking profits. This behavior suggests confidence in Ethereum’s long-term outlook rather than panic selling.
Technical indicators still favor bears
From a technical perspective, Ethereum remains locked in a bearish structure. The price continues to form lower highs and lower lows, confirming the ongoing downtrend that began after ETH fell sharply from above $3,000 earlier this year.
Momentum indicators also reflect weakness. The Relative Strength Index (RSI) recently recovered from deeply oversold levels near 20–25 but remains below 50, meaning bullish momentum has not fully returned. Meanwhile, the 20-day moving average sits above the current price, reinforcing resistance and limiting upside potential.
Key resistance levels to watch include $2,150–$2,200, followed by $2,650 and $2,800. On the downside, immediate support rests at $1,900. If this level fails, Ethereum could fall further toward $1,750–$1,800, with $1,600 serving as the next major support zone.
For now, Ethereum remains in what many analysts describe as a “cold zone”—a period marked by weak momentum and cautious trading. A confirmed move above $2,200 could signal the start of a recovery toward $2,400. But if sellers regain control and push prices below $1,900, the downtrend may continue before any meaningful rebound begins.
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