Ethereum is currently navigating a turbulent market, experiencing a sharp decline in price that saw it recently dip to $1,736. As of February 11, the popular cryptocurrency continues to struggle in its battle to maintain above the critical $2,000 mark, reflecting a worrying 31% downturn year-to-date in 2026.
Between February 4 and 8, whale wallets—those holding between 10,000 and 100,000 ETH—responded to the market dip by accumulating more than 520,000 tokens. This move stands in stark contrast to retail investors, who sold off 233,000 ETH during the same period, predominantly from wallets leveraging between 100 to 10,000 ETH. This reversal marks the first instance in 2026 where whale buying pressure has outstripped retail selling pressure, often an indicator of potential recovery ahead.
Recent onchain data highlights that major demand zones for Ethereum cluster between the $1,300 and $2,000 mark, with $1,237 identified as a potential support level. Moreover, ETH withdrawals from exchanges have surged to their highest level since October 2025, with over 220,000 ETH exiting platforms. Notably, Binance accounted for approximately 158,000 of those withdrawals, the largest single-day outflow observed since August 2025.
This outflow trend suggests that investors are either accumulating assets or opting to move their holdings to cold storage, driven by the current price levels. As ETH fluctuates between $1,800 and $2,000, there’s an evident market sentiment of accumulation amidst fear and uncertainty.
Price Patterns Indicate Further Consolidation
An analysis of current price movements reveals concerning similarities to the cycles witnessed between 2021 and 2022. Back then, ETH spent an extended period of about 12 months consolidating within a range marked by $1,730 and $885. The current drop toward $1,730 could signal a “first low” rather than a decisive bottom, suggesting a potential range-bound phase between $1,300 and $2,000 in the upcoming months.
Onchain cost basis data reveals significant supply clusters above the current trading prices, with 5.86% of the ETH supply pegged at the $2,822 level and 6.15% at $3,119. Conversely, below the current trading levels, demand seems to spike at $1,881 and notably at $1,237, indicating potential leverage points should a continued downturn occur.
Market Indicators Whisper Mixed Signals
Current market indicators are sending mixed signals. The Net Taker Volume on Binance has reverted to negative territory, following a brief positive stretch in January, suggesting a renewed buildup of short positions among traders. In the past 24 hours, Ethereum has witnessed $61.9 million in liquidations, with long positions constituting a significant portion of this figure, amounting to $46.5 million.
As resistance around the $2,100 mark looms, the outlook is precarious. Should Ethereum fall below $2,000, analysts predict it could head towards support at $1,740. Meanwhile, traditional indicators such as the Relative Strength Index and Stochastic Oscillator indicate a persistent bearish momentum dominating the market. Furthermore, ETH is currently trading below the average cost basis of investors set at $2,310, presenting a challenging environment for both buyers and sellers.
The Coinbase Premium remains at a discount, reflecting continued selling pressure from U.S. investors. Interestingly, stablecoin transaction volume on the Ethereum network has surged by 200% over the past 18 months, even as the price of ETH remains significantly lower than its previous all-time highs.
In conclusion, while the Ethereum ecosystem grapples with these challenges, the increased accumulation by whales during a downturn may signal a potential shift in market dynamics. Many crypto enthusiasts will be watching closely to see if this trend can stabilize prices and foster a recovery in the months ahead.
