Ethereum in Desperate Battle at $1,800... Will It Plunge Alongside the DeFi Market?
Ethereum in Desperate Battle at $1,800... Will It Plunge Alongside the DeFi Market?
Ethereum (ETH) has broken out of its short-term ascending channel and fallen below the $2,000 level, while assets locked in the decentralized finance (DeFi) market have sharply declined, significantly dampening investor sentiment.
According to cryptocurrency-focused outlet BeInCrypto on February 11 (local time), Ethereum has recorded a price drop of more than 5% in recent days, breaking below key technical support structures. On February 10, Ethereum failed to maintain its short-term recovery channel and fell below $1,980. This movement is attributed to a sharp decline in DeFi activity combined with a slowdown in institutional capital inflows. In particular, the Chaikin Money Flow (CMF), a key indicator of capital flows, has remained below zero, signaling a noticeable weakening in buying pressure.
The total value locked (TVL) in the DeFi ecosystem has shrunk by approximately $20 billion in just a few months, underscoring tightening market liquidity. After previously reaching $75.6 billion, DeFi TVL has recently plunged to around $55.5 billion and, on February 6, fell to a three-month low of $51.7 billion. The decline in locked assets has led to reduced network activity, serving as a major bearish factor weighing on Ethereum’s price.
Exchange flow data is also adding downward pressure. On-chain analysis shows that Ethereum inflows to exchanges continue to outpace outflows, indicating sustained net deposits and suggesting that investors are transferring assets to exchanges for potential selling. Since late December, approximately 1.5 million ETH has flowed back into exchanges, with this increased supply acting as a key driver of heightened selling pressure.
Despite the decline, large whale investors continue to form a solid support zone. On-chain indicators reveal that about 1.8 million addresses accumulated substantial holdings between $1,879 and $1,898, suggesting this range could serve as a short-term bottom. If this level is breached, further downside toward the next key support at $1,845 remains possible. Whether whales defend their positions is likely to be a critical factor in determining a potential trend reversal.
Currently, Ethereum is undergoing a stabilization phase amid the dual pressures of breaking below technical support and contraction in the DeFi market. Experts note that only if stable support is confirmed within the whale accumulation zone can ETH regain momentum to reclaim the $2,000 level. Market participants are closely monitoring changes in exchange inflows and the stability of key support levels while adopting a cautious approach.
*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses resulting from its use. The content should be interpreted for informational purposes only.*
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