Third Rebound Attempt: Why Can't Ethereum Break the $2,000 Barrier?

▲ Ethereum (ETH)

Ethereum (ETH) is struggling to break through the psychological resistance level of $2,000 but continues to move sideways, held back by selling pressure from whales and long-term holders.

According to cryptocurrency media outlet BeInCrypto on February 17 (local time), Ethereum is trading near $2,000 after rising about 1% over the past 24 hours. Over the past 10 days, Ethereum has attempted to rebound three times but repeatedly failed to break through resistance and retreated. Chart analysis shows an ascending triangle pattern forming with higher lows, but strong sell walls positioned around $2,000 and $2,120 are suppressing upward momentum.

The Chaikin Money Flow (CMF), a key technical indicator, moved above zero on February 15, reaching a positive 0.05 and signaling capital inflows from large investors. However, despite this buying pressure, prices remain stagnant due to selling by whales and long-term holders. On-chain data analysis shows that the balances of whale addresses holding large amounts of Ethereum recently decreased from 113.92 million ETH to 113.66 million ETH, a reduction of about 260,000 ETH. This suggests that approximately $500 million worth of assets has been released into the market.

The HODLer net position change indicator, which reflects the sentiment of long-term investors, also remained in negative territory from February 3 to 16, confirming a selling-dominant environment. During this period, selling pressure increased by roughly 34%, indicating that long-term holders have been taking profits or cutting losses whenever Ethereum attempts to rebound. Even as new buying interest emerges, it has been insufficient to absorb the large supply from existing holders.

Data analyzing investors’ cost basis clearly illustrates why resistance around $2,000 is so strong. Currently, more than 1.01 million ETH in buy volume is concentrated between $1,995 and $2,015. Whenever the price reaches this breakeven zone, investors move to recover their principal, resulting in excess supply. For Ethereum to enter a sustained upward trajectory, it must fully absorb and break through this supply zone.

Ethereum’s short-term direction will depend on whether it can break above the $2,000 and $2,120 resistance levels. If it successfully moves above the $2,120 to $2,140 range, the next targets are projected at $2,210 and $2,300. Conversely, if the $1,895 support level collapses, the current upward trendline would be invalidated, making further downside correction likely. The market is closely watching whether Ethereum can overcome heavy selling pressure and establish a new support base.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses resulting from reliance on it. The content should be interpreted solely for informational purposes.*