Ether (ETH) began the week with a decline below the psychological level of $2,000, causing the altcoin to suffer a 20% loss in February. Still, on-chain data shows that long-term investors are accumulating ETH and increasing network usage.
Now analysts are examining how ETH’s technical outlook and derivatives data align with emerging demand to find out whether a sustained rally above $2,000 is feasible.
Key insights:
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In February, over 2.5 million ETH flowed into accumulation addresses, bringing the 2026 holdings to 26.7 million.
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Weekly Ethereum transactions reached 17.3 million while average fees fell to $0.008, a 3,000-fold decline from the 2021 peak.
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ETH open interest has fallen to $11.2 billion, but leverage stays high, with liquidation clusters at around $1,909 and $2,200.
Ether accumulation is growing despite price declines
Ether accumulation addresses added greater than 2.5 million ETH in February at the same time as the value fell by around 20%. Total holdings have increased to 26.7 million ETH, up from 22 million in the beginning of 2026.
ETH balance on accumulation addresses. Source: CryptoQuant
MN Capital founder Michaël van de Poppe noted that the worth of ETH against silver is at its lowest level on record, arguing that such difficult market periods often represent a long-term window for accumulation.
In addition to improving fundamentals, network demand can also be improving. Over 30% of the circulating ETH supply (37,228,911 ETH) is currently staked, reducing the liquid supply. At the identical time, the weekly transaction count reached an all-time high of 17.3 million, while average fees fell to $0.008.
Total value of Ether used. Source: CryptoQuant
In comparison, Leon Waidmann, head of research at Lisk, noted that weekly transactions were near 21 million, but average fees rose to over $25 through the peak in 2021. The current structure reflects higher usage at significantly lower costs.
ETH falls below $2,000 as leveraged traders prepare for a breakout
On the four-hour chart, Ether appears to be forming an Adam and Eve bottom, a bullish reversal setup that begins with a pointy, V-shaped low (the “Adam”) followed by a slower, rounded base (the “Eve”).
The structure reflects an initial aggressive sell-off that quickly finds buyers after which a phase of gradual accumulation as volatility declines.
ETH/USDT four-hour chart. Source: Cointelegraph/TradingView
A confirmed breakout above the $2,150 neckline confirms the pattern and will open the door towards the $2,473-$2,634 area based on the measured movement forecast from the bottom. The value stays below recent higher lows, with $1,909 serving as a vital near-term liquidity level.
Open interest has declined to $11.2 billion from a cycle peak of $30 billion in August 2025. However, the estimated debt ratio stays elevated at 0.7 and is barely barely below the worth of 0.77 in January. This suggests that leverage continues to be concentrated within the system, increasing the potential of a robust move.
Percentage of ETH Global accounts long on Binance. Source: Hyblock
Hyblock data shows that 73% of world accounts are currently long ETH. Liquidation heatmaps show greater than $2 billion in shorts accumulating above $2,200, in comparison with about $1 billion in long liquidations at around $1,800, indicating greater risk of tightening to the upside.
Although the closest dense cluster is at $1,909, $563 million in long positions are vulnerable, which could act as a possible short-term liquidity magnet ahead of the expected upside.
ETH liquidation map. Source: CoinGlass
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