Ethereum Halts Prolonged Slide, Poised for Rebound as U.S. Selling Pressure Eases?

▲ Ethereum (ETH) ©

Amid a pause in the explosive growth of the Ethereum (ETH) network, positive signals are emerging that the price is forming a bottom as selling pressure from the United States eases. Attention is turning to the asset’s future direction as on-chain accumulation activity increases and inflows into spot exchange-traded funds (ETFs) resume.

According to investment media outlet FXStreet on February 20 (local time), Ethereum network growth has stalled over the past week after two months of rapid expansion. Although active addresses and transaction volumes surged to record highs even as Ethereum’s price plunged 42% earlier, both indicators have recently declined as the price moves sideways.

This slowdown follows a period of sideways price movement over the past two weeks after a downtrend that lasted from mid-January to early February. Binance’s Net Taker Volume has remained in negative territory since January, suggesting that short sellers have maintained dominance in the futures market. However, while the Coinbase Premium Index remains negative, it has rebounded slightly from its lowest level earlier this month, indicating that selling pressure within the United States is gradually easing.

The slowdown in U.S. selling is also reflected in ETF flows. According to data analytics platform SoSoValue, outflows from Ethereum spot ETFs have moderated in recent days, with $6.8 million in net inflows recorded so far this week. At the same time, Ethereum accumulation addresses accelerated their buying activity during the price dip, marking the fastest growth rate on record. The staking queue also increased to 3.82 million ETH, supporting investors’ long-term confidence.

From a technical perspective, Ethereum is currently trading around $1,950, down 0.2% from 24 hours earlier. The 20-day Exponential Moving Average (EMA) at $2,157 is sloping downward and capping price rebounds, maintaining a short-term bearish bias. Analysts suggest that a decisive break above this resistance level is needed to relieve near-term downward pressure.

The daily Relative Strength Index (RSI) stands at 33, near oversold territory, indicating weak momentum. However, a move above 50 could signal improving market sentiment. Key resistance levels are identified at $2,107 and $2,388, while support levels are located at $1,741 and $1,524. A break above the initial resistance at $2,107 could extend the upward trend, but a failure to hold the preliminary support at $1,741 may expose the asset to deeper losses.

*Disclaimer: This article is for investment reference only and the publisher is not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*