BlockBeats news, on February 17, despite Ethereum's cumulative decline of approximately 20% since February and a temporary drop below the $2,000 psychological level, on-chain data and derivatives structures indicate that the market is preparing for a potential rebound.
On-chain data shows that over 2.5 million ETH flowed into long-term holding addresses in February, with the total holdings in these addresses increasing from 22 million to 26.7 million since 2026. Meanwhile, approximately 37.22 million ETH—over 30% of the circulating supply—are currently staked, leading to a continued contraction in circulating supply. Network fundamentals have also significantly improved, with weekly transaction volume reaching a record high of 17.3 million, and the median gas fee dropping to $0.008, a reduction of roughly 3,000 times compared to the peak in 2021.
On the technical side, ETH on the 4-hour chart may be forming an "Adam and Eve Bottom" reversal pattern. If the price successfully breaks above the neckline at $2,150, the target range is projected at $2,473–$2,634. If the recent high-low structure is broken, $1,909 serves as a key short-term liquidity level.
In the derivatives market, ETH open interest has declined to $11.2 billion, a significant drop from the cyclical high of $30 billion in August 2025, though the estimated leverage ratio remains at a relatively high level of 0.7. Data shows that approximately 73% of accounts are currently in long positions. The liquidation heatmap reveals over $2 billion in short liquidation pressure clustered above $2,200, while long liquidation volume near $1,800 amounts to approximately $1 billion, indicating relatively higher short squeeze risk above.
Analysis suggests that if ETH successfully breaks above $2,150, it could open upside potential in the short term, with a target near $2,500.