Key Takeaways
- Ethereum (ETH) currently trades near $1,820, testing a significant 5-year demand zone last visited during the 2022–2023 bear cycle
- Technical analysts have identified a hidden bullish divergence on weekly timeframes, a pattern that previously sparked a 100% price surge
- Bearish technical structure remains intact, with a series of lower highs indicating sellers maintain market control
- Loss of the $1,820 support level could drive ETH down to $1,740, establishing a fresh yearly bottom
- BitMine accumulated 51,162 ETH over the past week, maintaining its buying strategy amid the market decline
Ethereum briefly dipped to $1,813 during intraday trading before staging a modest recovery to $1,820, positioning the asset at a crucial technical threshold that market observers are monitoring with heightened attention.
This price territory hasn’t been visited since the prolonged bear market spanning July 2022 through November 2023. Market technicians characterize this area as a significant long-term demand region rather than a distribution point.
According to analyst Merlijn The Trader, Ethereum is currently positioned within a demand zone established over five years. Historical data suggests this price range has traditionally served as an accumulation area for long-term holders.
Nevertheless, the near-term outlook remains decidedly bearish. Ethereum has printed a sequence of lower highs following the loss of its value area high, a technical formation that confirms ongoing seller dominance.
The point of control (POC)—a price level that previously represented equilibrium within the trading range—has been decisively lost. Price action has subsequently rotated downward into the value area low, reinforcing the bearish narrative.
The $1,820 price point has emerged as absolutely critical. It stands as one of the final major structural supports before a more substantial decline becomes probable.
$1,740 Emerges as Next Downside Objective
Should the $1,820 level fail to provide adequate support, market analysts project the subsequent downside objective at $1,740. This would establish a new low point for Ethereum in 2025.
Support zones typically deteriorate in strength following multiple retests. Given the persistent bearish momentum and absence of substantial buying pressure, the $1,820 level faces considerable risk.
A decisive breach beneath this threshold would unlock additional downside potential, with $1,740 representing the next probable zone where demand might materialize.
Analyst Sykodelic highlighted a hidden bullish divergence forming on the weekly timeframe. When this technical pattern last emerged, ETH subsequently rallied 100%. That said, such a move may not be immediately forthcoming.
Market commentator StockTrader Max suggested Ethereum should no longer be viewed as a short-term trading opportunity. He characterized it as an investment requiring a multi-year time horizon rather than weeks or months.
Institutional Accumulation Continues
Fundstrat’s Tom Lee oversees Ethereum DAT BitMine, which purchased 51,162 ETH during the previous week. The organization stated it remains committed to implementing its treasury strategy while staking holdings to generate additional yield.
Tom Lee recognized the challenging price dynamics but maintains that cryptocurrency markets retain positive catalysts. BitMine persists with its accumulation approach despite current market conditions.
ETH struggled to sustain levels above $1,900 earlier this week before retreating. The asset momentarily touched $1,813 before rebounding to $1,820 as of this writing.
The cryptocurrency remains in proximity to its February 6 bottom, and the technical framework has yet to display indications of a trend reversal.
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