Ethereum

Thomas

Momentum

<a href="https://bsc.news/post/what-is-ethereum-eth-how-it-works-explained" rel="noopener noreferrer nofollow">Ethereum</a> can still fall toward the $1,500 to $1,800 range if selling pressure continues and demand remains weak. ETH is&nbsp;<a href="https://www.tradingview.com/chart/GUxMy9Om/?symbol=BITSTAMP%3AETHUSD" rel="noopener noreferrer nofollow">trading below $2,000</a> after losing about 30% over the last seven days. This drop is happening even as the Ethereum network records its highest activity level to date, creating a clear gap between usage and price.
<h2 id="span-span-strong-what-does-the-eth-price-chart-show-right-now-strong-span-span">What Does The ETH Price Chart Show Right Now?</h2>
On the 4-hour chart, ETH remains in a firm downtrend. Price has broken below the $2,000 support zone and has failed to reclaim it on multiple attempts.
<figure class="image"><img alt="ETH price chart" src="https://storage.bsc.news/image_0c23ebe553.png" width="1562" height="899">
 <figcaption>
 ETH price chart (Image: TradingView)
 </figcaption>
</figure>
Momentum indicators confirm continued weakness.
<ul>
 <li>RSI is near 30, which signals oversold conditions but not a confirmed bottom</li>
 <li>MACD remains negative, showing bearish momentum is still active</li>
 <li>The market structure continues to form lower highs and lower lows</li>
</ul>
Oversold readings alone do not signal a reversal. In past drawdowns, ETH has stayed oversold for extended periods while liquidity continued to exit the market.
<h2 id="span-span-strong-where-are-the-key-eth-support-levels-strong-span-span">Where Are The Key ETH Support Levels?</h2>
Several price levels stand out based on historical trading activity and liquidation data.
<ul>
 <li>$1,800: A psychological level and prior support zone where price has reacted multiple times</li>
 <li>$1,650 to $1,700: A congestion area from earlier accumulation phases</li>
 <li>$1,500 to $1,550: A high-risk liquidation zone flagged by derivatives data</li>
</ul>
Liquidation risk remains active between $1,509 and $1,800. A move into this range could trigger forced selling from leveraged positions, increasing downside volatility.
<h2 id="span-span-strong-why-is-eth-falling-despite-record-network-activity-strong-span-span">Why Is ETH Falling Despite Record Network Activity?</h2>
Ethereum is currently experiencing its most active phase on-chain.
According to&nbsp;<a href="https://cryptoquant.com/insights/quicktake/6982e9ddf9e47748502fedbd-Ethereum-Transfer-Count-Surge-A-Historical-Warning-Signal" rel="noopener noreferrer nofollow">CryptoQuant</a>, Ethereum Transfer Count, measured by a 14-day moving average, reached a record 1.1 million this month. Transfer count refers to the total number of token movements on the network and is often used as a proxy for usage.
This data points to strong network adoption. However, price is driven by capital flows, not usage alone.
Retail demand has declined sharply. Many traders are closing positions instead of opening new ones. This shift is visible in the derivatives market, where futures open interest dropped to $25.4 billion from $26.3 billion in a single day.
High activity combined with weak demand often leads to price compression rather than immediate recovery.
<h2 id="span-span-strong-how-are-institutions-and-large-holders-impacting-eth-price-strong-span-span">How Are Institutions And Large Holders Impacting ETH Price?</h2>
Large holders have added to near-term selling pressure.
Trend Research, sold 170,033 $ETH ($322.5M) over the last day and still holds 293,121 $ETH ($563M),&nbsp;<a href="https://x.com/lookonchain/status/2019720290205589633" rel="noopener noreferrer nofollow">according to on-chain data</a>. Analysts linked the transfer to selling and loan repayments.
Other notable sales include:
<ul>
 <li>Stani Kulechov, founder of Aave,&nbsp;<a href="https://x.com/lookonchain/status/2019629854833144049" rel="noopener noreferrer nofollow">selling 4,503 ETH</a> at an average price of $1,857</li>
 <li>Vitalik Buterin&nbsp;<a href="https://intel.arkm.com/explorer/address/0xfEB016D0D14AC0Fa6d69199608B0776d007203B2" rel="noopener noreferrer nofollow">selling 2,961.5 ETH</a> for $6.6 million over three days at an average price of $2,228</li>
</ul>
These transactions are not signs of panic, but they increase circulating supply at a time when demand is weak.
<h2 id="span-span-strong-what-is-happening-with-bitmine-and-why-it-matters-strong-span-span">What Is Happening With BitMine And Why It Matters?</h2>
BitMine Immersion Technologies is the largest Ethereum-focused treasury company. It holds approximately 4.285 million ETH, or about 3.55% of Ethereum’s circulating supply.
The company accumulated ETH at an estimated cost of $15.65 billion. At current prices, that position is worth about $9 billion, leaving $6 billion to $8 billion in&nbsp;<a href="https://www.benzinga.com/crypto/cryptocurrency/26/02/50305123/tom-lees-bitmine-down-6b-on-ethereum-but-heres-why-he-keeps-buying" rel="noopener noreferrer nofollow">unrealized losses</a>. BMNR stock has fallen 88% from its July peak.
Key details provide context:
<ul>
 <li>ETH holdings were acquired through equity issuance, not debt</li>
 <li>About 2.9 million ETH is staked, generating an estimated $188 million in annualized staking revenue</li>
 <li>BitMine holds $538 million in cash and added 41,788 ETH last week</li>
</ul>
CEO Thomas Lee stated that unrealized losses during downturns are part of a long-term treasury strategy, similar to index funds during market declines. Even so, large treasury holders remain a risk factor if liquidity conditions worsen.
<h2 id="span-span-strong-are-etfs-adding-more-downside-pressure-strong-span-span">Are ETFs Adding More Downside Pressure?</h2>
Yes. Spot ETH exchange-traded funds in the US have seen consistent outflows since January 20.
<a href="https://sosovalue.com/assets/etf/us-eth-spot" rel="noopener noreferrer nofollow">SoSoValue data</a> shows spot ETH ETFs recorded a net outflow of $80.79 million on February 5. Fidelity’s FETH accounted for $55.78 million of that total.
ETF outflows represent passive selling rather than discretionary trading, adding steady pressure without quick reversals.
<h2 id="span-span-strong-is-anyone-accumulating-eth-right-now-strong-span-span">Is Anyone Accumulating ETH Right Now?</h2>
Some long-term investors and whales are accumulating ETH selectively.
On-chain data shows accumulation during price dips, while short-term traders continue to exit. This pattern often appears during mid-cycle corrections rather than final market bottoms.
Accumulation can limit long-term downside but does not stop short-term drawdowns.
<h2 id="span-span-strong-how-low-eth-can-go-from-here-strong-span-span">How Low ETH Can Go From Here</h2>
Based on current chart structure, derivatives data, and on-chain flows, ETH can still test the $1,500 to $1,800 range if selling pressure persists. Momentum remains bearish, demand is weak, and large holders are adding supply to the market.
At the same time, Ethereum’s network activity is at record highs, staking continues to reduce liquid supply, and some long-term investors are accumulating. These factors help stabilize the market over time but do not prevent further downside in the near term.
For now, ETH price is reacting to liquidity conditions, not network usage.
<h2 id="span-span-resources-span-span">Resources</h2>
<ol>
 <li><a href="https://www.tradingview.com/chart/GUxMy9Om/?symbol=BITSTAMP%3AETHUSD" rel="noopener noreferrer nofollow">Ethereum on TradingView</a>: ETH price action</li>
 <li><a href="https://cryptoquant.com/insights/quicktake/6982e9ddf9e47748502fedbd-Ethereum-Transfer-Count-Surge-A-Historical-Warning-Signal" rel="noopener noreferrer nofollow">Report by CryptoQuant</a>:&nbsp;Ethereum Transfer Count Surge: A Historical Warning Signal?</li>
 <li><a href="https://intel.arkm.com/explorer/address/0xfEB016D0D14AC0Fa6d69199608B0776d007203B2" rel="noopener noreferrer nofollow">Vitalik wallet data on Arkham</a>: Details about ETH movement&nbsp;</li>
 <li><a href="https://www.benzinga.com/crypto/cryptocurrency/26/02/50305123/tom-lees-bitmine-down-6b-on-ethereum-but-heres-why-he-keeps-buying" rel="noopener noreferrer nofollow">Report by Benzinga</a>: Tom Lee's BitMine Down $6B On Ethereum, But Here's Why He Keeps Buying</li>
</ol>

How Low Can ETH Go From Here?

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