Ethereum entered the new week below the $2,000 mark and shed approximately 20% of its value in February. Yet beneath the surface, market signals suggest that current weakness may not indicate a continuation of decline, but rather a transitional phase before a potential reversal toward the $2,500 level.
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Ethereum Fundamentals Strengthen Despite Decline
Despite negative sentiment, long-term investors continue accumulating. So-called accumulation addresses increased their holdings by more than 2.5 million ETH during February and now control approximately 26.7 million ether in total, compared to roughly 22 million at the beginning of 2026. Meanwhile, more than 30% of the total ETH supply remains locked in staking, which limits the amount of liquid coins on the market and can amplify upward price movement in the event of rising demand.
Fundamental data shows improving network health. The number of transactions reached a record 17.3 million per week, while median fees fell to just $0.008. For comparison, during the market peak in 2021, fees exceeded $25 with similar transaction volumes. Ethereum today handles higher activity more efficiently and at lower cost, which strengthens its long-term fundamental profile.
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Technicals and Derivatives Favor ETH Growth
From a technical perspective, a bullish reversal structure known as “Adam and Eve” is forming on the chart. The key level is $2,150, which serves as the neckline of this formation. Breaking through it could open space for growth into the zone of approximately $2,473 to $2,634. Conversely, the area around $1,909 represents an important short-term liquidity boundary that could temporarily slow price development.
Derivative markets meanwhile suggest potential for sharper movement. Open interest on ETH futures has declined roughly from $30 billion to $11.2 billion, signaling a retreat of speculative positions. However, above the $2,200 level sits more than $2 billion in short positions, whose liquidation could trigger a short squeeze and accelerate growth. The combination of accumulation, strong network activity, and technical formation thus positions Ethereum in a delicate, yet potentially decisive phase.
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