Ethereum (ETH) has faced a challenging February, experiencing a 20% decline as it slipped below the critical $2,000 mark. Despite this, promising signs indicate a potential rebound, with bullish patterns forming under $2,000 and increasing upside liquidation clusters suggesting a quick recovery. Analysts are now focusing on Ethereum’s technical indicators and derivatives data to assess if a sustainable rise above $2,000 is on the horizon.
In February, more than 2.5 million ETH were added to accumulation addresses, boosting total holdings to 26.7 million ETH for 2026. Ethereum's network activity is also on the rise, with weekly transactions hitting a record 17.3 million while median fees plummeted to $0.008, a dramatic decrease from the peaks of 2021. Despite a drop in ETH open interest to $11.2 billion, leverage remains high, with liquidation clusters noted near $1,909 and $2,200.
The accumulation of ETH continues even as prices have fallen. Accumulation addresses have increased their holdings by over 2.5 million ETH in February, lifting total holdings from 22 million at the start of 2026 to 26.7 million. Michaël van de Poppe, founder of MN Capital, pointed out that ETH's value against silver is at an all-time low, suggesting this challenging market phase could be an opportunity for long-term accumulation.
Network demand is improving, with over 30% of ETH’s circulating supply, amounting to 37,228,911 ETH, currently staked. This reduces the liquid supply while transactions reach an all-time high at a low cost. Leon Waidmann, Lisk's head of research, noted that while weekly transactions were around 21 million in 2021, the median fees then exceeded $25, highlighting the current higher usage at a fraction of the cost.
ETH's price remains compressed below $2,000, with traders anticipating a breakout. The four-hour chart reveals an Adam and Eve bottom pattern, a bullish reversal setup characterized by an initial sharp decline followed by a gradual base formation. A breakout above the $2,150 level could see ETH aiming for the $2,473–$2,634 range, according to projections based on the pattern’s base. The key short-term liquidity level is $1,909.
Open interest has decreased from a peak of $30 billion in August 2025 to $11.2 billion, with the estimated leverage ratio slightly down from 0.77 in January to 0.7 now, indicating concentrated leverage within the system and the potential for volatile movements.
Data from Hyblock reveals that 73% of global accounts are currently long on ETH, with over $2 billion in short positions above $2,200 and around $1 billion in long positions near $1,800. The dense cluster at $1,909, where $563 million in longs are at risk, could act as a short-term liquidity magnet before the anticipated upward trend.
The cryptocurrency market remains unpredictable, and investors are advised to perform their own research before making decisions. While the information provided is intended to be accurate and timely, there are no guarantees regarding its completeness or reliability.