Ethereum (ETH) has experienced a significant decline, dropping below the psychological threshold of $2,000, resulting in a 20% loss for February. However, on-chain data indicates that long-term investors are accumulating ETH, alongside increasing network activity.
Accumulation Trends Amid Price Drops
In February, over 2.5 million ETH flowed into accumulation addresses, boosting total holdings to 26.7 million ETH. This increase occurred despite the price drop, suggesting a strategic accumulation by investors. The current state of the Ethereum network shows that more than 30% of its circulating supply, amounting to 37,228,911 ETH, is staked, which reduces the liquid supply available in the market.
Transaction Activity and Fee Dynamics
Ethereum’s weekly transaction count reached a record high of 17.3 million, with median transaction fees dropping to $0.008. This represents a dramatic decrease from the peaks observed in 2021, where fees surged above $25. The increased transaction volume at significantly lower costs indicates a growing demand for Ethereum’s network capabilities.
Technical Analysis and Market Sentiment
From a technical perspective, Ethereum appears to be forming a bullish reversal pattern known as an Adam and Eve bottom. This pattern consists of an initial sharp sell-off followed by a gradual accumulation phase. Analysts suggest that a confirmed breakout above the $2,150 neckline could lead to price targets in the range of $2,473 to $2,634. However, the risk of invalidation remains below recent higher lows, particularly at the $1,909 level.
Leverage and Liquidation Risks
Open interest in ETH has decreased to $11.2 billion from a peak of $30 billion in August 2025, yet leverage remains high, with an estimated ratio of 0.7. Data indicates that 73% of global accounts are currently long on ETH, presenting a potential squeeze risk. Liquidation heatmaps reveal over $2 billion in short positions clustered above $2,200, while approximately $1 billion in long liquidations are positioned near $1,800, highlighting the precarious balance in market sentiment.
This analysis underscores the complex dynamics at play in Ethereum’s market, where accumulation continues despite price pressures, and technical patterns suggest potential for future movement.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
