Ethereum price recently failed to sustain its breakout above $2,100, forcing the altcoin into a downturn. Rejections strengthened resistance and short-term momentum declined. External developments raised hopes for an economic recovery, but limited investor participation dampened the impact.
ETH then returned to its structural range. The broader crypto market situation remains fragile and the current structure reflects hesitancy rather than renewed confidence.
BitMine maintains 5% alchemy
On February 23, BitMine announced that it had acquired an additional 51,162 ETH worth over $93 million in one week. The purchase was one of the largest institutional purchases of Ethereum in recent weeks. However, this announcement failed to trigger a sustained price increase.
Long-term holders resumed distributions instead of causing accumulation. On-chain data suggests that some investors likely used the headlines as liquidity to reduce their exposure. This reaction highlights that Ethereum’s price remains more sensitive to broader market influences than individual company acquisitions.
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Ethereum holders are struggling
Ethereum’s HODL wave provides insight into investor behavior. Short-term holders have matured into medium-term holders, with supply of three- to six-month notes increasing 5% in the past week. This change indicates that investors are waiting rather than exiting their positions.
Underwater holders appear to be reluctant to recognize losses. Their holding decisions support price stability. But this same wariness may be limiting new buying activity. Investors are prioritizing confirmation of recovery before committing additional capital to ETH.
ETH price may fall further
Ethereum is trading at $1,824 at the time of writing after losing the $1,928 support level. The Parabolic SAR indicator sits above the candlestick, indicating that a short-term downtrend has been confirmed. This technical setup suggests that sellers are currently controlling momentum.
The next major support for ETH is $1,750. A decisive break below this level could expose the cryptocurrency to further decline towards $1,595. If support is not maintained, a weak macro environment and sustained capital outflows could amplify volatility.
The CBD heatmap identifies a key demand zone between $1,880 and $1,900. Ethereum has fallen below this range in its recent selloff. If buyers in this zone choose to sell to limit their losses, downward pressure could accelerate across spot and derivatives markets.
Conversely, resilience among holders could change momentum. A rebound towards $1,928 would indicate structural improvement. Retrieving that level as support could pave the way for ETH to $2,108. A sustained breakout above this resistance will invalidate the current bearish theory and restore bullish momentum.
