Ethereum Falls Below $2,000 as Selling Pressure Mounts

Ethereum price fell below $2,000, marking a significant shift in market sentiment. The drop followed a breakdown below the key technical support at $2,035 on the hourly chart and a breach of the 50% Fibonacci retracement level between the $1,895 low and the $2,106 high.

ETH traded below the $2,040 and $2,020 levels to enter a bearish zone. Moreover, the bears even pushed the price towards the $1,950 support. 

Key Levels and Market Overview

Ethereum price is currently trading at $1,968.2, hovering near the 100-hourly Simple Moving Average. If the bulls remain in action above $1,920, the price could attempt another increase. With Ethereum trading below the $2,000 level, the market has transitioned into a ‘resistance-heavy’ environment.

Immediate support is $1,905.5, with stronger resistance near $2,253, a Fibonacci level of 83.2%. The Relative Strength Index (14) is 33.2. The 50-day Exponential Moving Average is ~1,952.81. A clear break below $1,930 could push ETH toward $1,880 and potentially $1,820 or $1,780. The key pivot point is 1,982.3, with a low of 1,539.5 and a high of 2,255.9.

If Ethereum fails to clear the $2,000 resistance, it could catalyse a fresh decline. Having been at a ‘must-hold’ level for the better part of late 2025, $2,200 is now considered the ‘gatekeeper’ to a neutral market. Until ETH reclaims this, the trend is firmly in the hands of bears. The following table presents Ethereum spot ETF data for Feb. 13.

Sideways Structure Persists Amid Mixed Holder Signals

The challenge Ethereum is facing is not just resistance levels, but indecision among key holder cohorts. Whales and long-term holders are sending mixed signals. This lack of alignment is contributing to a prolonged sideways movement in price action. Roughly 58% of the ETH addresses are holding at a loss.

Many of the investors are expected to sell as the price approaches their break-even point near $2,000, creating a heavy ‘overhead supply’. The U.S spot Ethereum ETFs recorded roughly $161 million in net outflows. Wednesday and Thursday showcased higher withdrawals of over $242 million.

Some market observers are calling this shift ‘Ghost Window’, a period where the ETF outflows peak before a potential V-shaped recovery. 

However, on Friday, the funds saw a modest $10.26 million net inflow, breaking a painful two-day streak of massive selling. The Grayscale Ethereum Mini Trust (ETH) has been leading the minor recovery in flows. This suggests that while large institutional holders are exiting the main funds, retail heavy ‘mini’ products are seeing accumulation at these sub $2,000 prices. 

Past Cycles Signal Strong Rebound 

The Fear and Greed Index is 12, indicating extreme fear, due to the 30-day sell-off and market volatility. This suggests mixed market emotions. However, despite the bearish technicals, on-chain data is indicating aggressive accumulation, suggesting a near-term conviction, with short-term traders showing some greed while longer-term indicators remain cautious.

The dip below the $2,000 threshold triggered a historical MVRV ‘opportunity zone’ signal, a pattern that preceded strong rebounds in past cycles. But the institutional demand is remaining cautious, with ETF outflows and rising interest rates dampening the bullish momentum.

Additionally, regulatory headwinds like the latest Senate hearing on the Clarity Act are also sidelining the bull rally. Investors are waiting for clarity on the Glamsterdam upgrade before starting a fresh bull momentum.