Key Takeaways
- ETH is currently trading near $1,820, testing a significant 5-year demand zone not visited since the 2022–2023 bear cycle
- A hidden bullish divergence has emerged on the weekly timeframe, similar to a pattern that sparked a previous 100% price surge
- The technical structure remains bearish with sequential lower highs indicating dominant selling pressure
- If support at $1,820 fails, the next downside objective sits at $1,740, which would establish a fresh yearly low
- BitMine increased its holdings by 51,162 ETH over the past seven days, maintaining its accumulation approach amid weakness
Ethereum experienced an intraday decline to $1,813 before staging a modest recovery back to $1,820, positioning the cryptocurrency at a crucial technical support level drawing significant attention from market observers.
This price range hasn’t been visited since the prolonged bear market period spanning July 2022 through November 2023. Market analysts characterize this area as a multi-year accumulation zone rather than a distribution region.
According to analyst Merlijn The Trader, Ethereum has entered a 5-year demand zone. Historical data suggests this range has traditionally served as an area where long-term holders accumulate positions.
However, near-term technicals paint a bearish picture. ETH has registered a series of declining highs following the loss of its value area high, a formation indicating persistent selling dominance.
The point of control (POC), which previously represented equilibrium pricing within the trading range, has been breached. Since then, price action has rotated downward into the value area low, reinforcing the bearish narrative.
The $1,820 threshold has become pivotal. It stands as one of the final significant structural support zones before a more substantial decline becomes probable.
$1,740 Emerges as Next Bearish Objective
Should $1,820 give way, market watchers identify $1,740 as the subsequent downside destination. Breaking through would establish a new low for the year.
Support zones typically lose effectiveness following multiple retests. Given the prevailing bearish momentum and subdued buying interest, the $1,820 level faces genuine pressure.
A decisive breakdown beneath this threshold would expose additional downside vulnerability, with $1,740 representing the next logical area where demand might materialize.
Analyst Sykodelic identified a hidden bullish divergence forming on the weekly chart. When this configuration last appeared, ETH subsequently rallied 100%. Nevertheless, this doesn’t guarantee an immediate reversal.
Investor StockTrader Max suggested Ethereum should no longer be approached as a short-term position. He characterized it as an investment requiring a multi-year perspective rather than weeks or months.
Corporate Entities Continue Accumulating
Fundstrat’s Tom Lee operates Ethereum DAT BitMine, which accumulated 51,162 ETH during the previous week. The organization stated it remains committed to implementing its treasury approach while staking holdings to produce yield.
Tom Lee recognized the challenging price performance but maintained that cryptocurrency markets still benefit from positive catalysts. BitMine continues purchasing during price weakness.
ETH lost support above $1,900 earlier this week before declining further. The asset momentarily reached $1,813 before bouncing to $1,820 as of this writing.
The cryptocurrency remains near its February 6 low, and technical indicators have yet to signal a trend reversal.
