TLDR
- Ethereum (ETH) currently trades near $1,820, testing a significant 5-year demand zone not visited since the 2022–2023 bear cycle
- Technical analysts have identified a hidden bullish divergence on weekly timeframes, a pattern that previously led to a 100% price surge
- Market structure remains bearish with ongoing lower highs indicating sellers maintain dominance
- Loss of the $1,820 support could trigger a move down to $1,740, establishing a fresh yearly low
- BitMine accumulated 51,162 ETH over seven days, maintaining its buying strategy amid market weakness
Ethereum touched a session low of $1,813 before staging a modest rebound to $1,820, positioning the asset at a crucial technical support that market observers are monitoring intently.
The current price action returns ETH to territory last visited during the prolonged bear market spanning July 2022 through November 2023. Technical analysts identify this area as a significant long-term demand zone rather than a distribution level.
According to analyst Merlijn The Trader, Ethereum has returned to a 5-year demand zone. His analysis suggests this price range has historically served as an accumulation area for long-term investors.
However, near-term technicals paint a bearish picture. Ethereum has established a series of declining peaks after losing its value area high, a chart pattern indicating persistent selling pressure.
The point of control (POC), which previously represented equilibrium pricing within the trading range, has been breached. Price action has subsequently declined into the value area low, reinforcing the bearish narrative.
The $1,820 threshold has become increasingly important. It stands as one of the final significant structural supports before the likelihood of a deeper decline increases substantially.
Bears Eye $1,740 as Next Target
Should $1,820 fail to provide support, market analysts project the subsequent downside objective at $1,740. This level would establish a new low for the current year.
Technical support zones typically deteriorate after multiple retests. Given persistent bearish momentum and subdued buying interest, the $1,820 level faces genuine pressure.
A decisive breakdown beneath this threshold would likely trigger additional selling, with $1,740 emerging as the next potential area where demand might materialize.
Analyst Sykodelic highlighted a hidden bullish divergence forming on the weekly timeframe. When this technical pattern last emerged, ETH experienced a 100% rally. That said, such a move isn’t necessarily imminent.
Market participant StockTrader Max suggested Ethereum should no longer be viewed as a short-term position. He characterized it as an investment requiring a multi-year outlook rather than a weeks or months timeframe.
Institutions Still Buying
Fundstrat’s Tom Lee operates Ethereum DAT BitMine, which acquired 51,162 ETH during the previous seven days. The company stated it remains committed to implementing its treasury approach and staking positions to earn yield.
Tom Lee recognized the challenging price environment but maintained that cryptocurrency markets retain positive fundamental drivers. BitMine continues its accumulation strategy irrespective of short-term volatility.
ETH was unable to maintain support above $1,900 earlier this week before declining. The asset briefly reached $1,813 before recovering to its current $1,820 level.
The cryptocurrency remains near its February 6 low, and technical structure has yet to indicate a potential trend reversal.
