Ethereum Eyes $2,500 Retest on Bullish Pattern Formation

Ethereum began the week by slipping beneath the critical $2,000 threshold, resulting in a roughly 20% decline for the month of February. Despite this downturn, on-chain metrics reveal that long-term holders continue to gather ETH, coupled with increasing activity across the network.

At present, market experts are closely scrutinizing Ethereum's technical indicators alongside derivatives market data to assess how these elements correspond with the growing demand, potentially signaling the sustainability of a sustained upward movement beyond the $2,000 mark.

Key takeaways

• Accumulation addresses absorbed more than 2.5 million ETH during February, boosting total holdings to 26.7 million ETH.
• Ethereum's weekly transaction volume reached 17.3 million, even as median transaction fees plummeted to just $0.008—a staggering 3,000-fold reduction from the highs seen in 2021.
• Open interest for ETH has retreated to $11.2 billion, yet leverage levels stay notably high, with significant liquidation clusters positioned around $1,909 and $2,200.

Ether accumulation grows despite price drop

Addresses classified for accumulation purposes added over 2.5 million ETH in February, even amid a price reduction of approximately 20%. Consequently, the aggregate holdings in these addresses have climbed to 26.7 million ETH, a marked increase from the 22 million ETH recorded at the start of 2026.

MN Capital founder Michaël van de Poppe observed that Ethereum's valuation relative to silver has hit its all-time lowest point, suggesting that these challenging market conditions frequently create prime opportunities for long-term accumulation strategies.

Network demand is strengthening in tandem with enhancing fundamental metrics. Currently, more than 30% of Ethereum's circulating supply—equivalent to 37,228,911 ETH—remains staked, which effectively diminishes the available liquid supply on the market. Simultaneously, the number of weekly transactions has soared to a record-breaking 17.3 million, while median fees have dropped sharply to $0.008.

In contrast, Leon Waidmann, head of research at Lisk, pointed out that weekly transaction volumes approached 21 million during the 2021 bull market peak, yet median fees skyrocketed beyond $25 at that time. Today's configuration demonstrates substantially greater network utilization at a fraction of the previous costs, underscoring improved efficiency and accessibility.

ETH compresses below $2,000 as leveraged traders brace for a breakout

Examining the four-hour price chart, Ethereum seems to be developing an Adam and Eve bottom pattern, which is recognized as a bullish reversal formation. This setup typically features an initial sharp, V-shaped decline known as the “Adam” cup, followed by a more gradual, rounded consolidation phase referred to as the “Eve” base.

This particular structure indicates an early intense selling pressure that swiftly encounters strong buying support, succeeded by a phase of steady accumulation where price volatility gradually diminishes and stabilizes.

Should a decisive breakout occur above the $2,150 neckline, it would confirm the validity of this pattern, potentially paving the way for price targets in the $2,473 to $2,634 range. These projections are derived from the measured move calculation based on the pattern's formation depth. The pattern would be invalidated if prices fall below recent higher lows, with $1,909 serving as a pivotal short-term liquidity threshold.

Ethereum's open interest has decreased to $11.2 billion, down from a cycle high of $30 billion recorded in August 2025. Nevertheless, the estimated leverage ratio persists at an elevated 0.7, showing only a minor decline from 0.77 in January. This persistence implies that leveraged positions are still heavily concentrated within the market, heightening the potential for abrupt and significant price swings in either direction.

Data from Hyblock indicates that 73% of global accounts on Binance are positioned long on ETH at the moment. Liquidation heatmaps further reveal over $2 billion in short positions clustered above the $2,200 level, in contrast to about $1 billion in long liquidations concentrated near $1,800. This imbalance points to a greater risk of an upward squeeze for shorts.

The closest major cluster sits at $1,909, where $563 million in long positions could be at risk, potentially functioning as a temporary liquidity attractor ahead of the anticipated bullish trend resumption.