Ethereum Stalls at $1,900 Support as Technical Compression and Altcoin Fatigue Build

▲ Ethereum (ETH) ©

Ethereum (ETH) is holding above the key $1,900 support level, but analysts say it has entered a compressed range ahead of a directional breakout as capital rotates into Bitcoin and technical resistance caps gains.

According to investment media outlet FX Leaders on February 20 (local time), Ethereum is trading within the $1,900–$1,957 range with little change from the previous day. On a monthly basis, it is attempting a rebound after undergoing a meaningful correction. However, as market funds defensively shift into Bitcoin, ETH’s relative weakness continues.

The biggest burden at present is the rise in Bitcoin dominance. Bitcoin’s market share has climbed to 58.29%, while the altcoin season index has fallen 16.67% to around 30. This indicates that capital is moving from high-beta altcoins into Bitcoin. Rather than Ethereum-specific fundamental negatives, mechanical selling driven by portfolio rebalancing is pressuring prices. If Bitcoin dominance clearly surpasses 59%, rotational pressure on Ethereum could intensify further.

Technically, $1,985 is the key short-term inflection point. ETH formed a bottom around $1,905 on the hourly chart and rebounded to the $1,950 area, but faces resistance at $1,985 while holding $1,935—corresponding to the 61.8% Fibonacci retracement of the decline from $2,038 to $1,905—as support. A descending trendline and the 100-hour simple moving average converge in this zone, reinforcing overhead resistance. Twenty-four-hour trading volume has fallen 10.13%, signaling bearish consolidation without a clear buying or selling advantage. Reclaiming $1,970 (50% Fibonacci) could serve as an initial rebound signal, while a breakout above $2,000 accompanied by volume could open the path to $2,050 and further toward the $2,120–$2,150 range. Conversely, a break below $1,905 would put supports at $1,880 and $1,840–$1,820 to the test.

The medium-term structure appears heavier. The $2,100–$2,300 daily support zone, which had served as a floor in recent months, has broken down and turned into resistance. If bearish momentum strengthens, the next major demand zone is projected at $1,500–$1,700. However, some analysts note that on the weekly chart, a rectangular consolidation pattern similar to that seen just before the major rally in late 2025 is forming. This suggests that the current long-term compression could still resolve with an upside breakout rather than a downside breakdown.

Short-term momentum indicators are mixed. The hourly relative strength index (RSI) remains above the 50 level, and the moving average convergence divergence (MACD) indicator is still in positive territory but showing signs of slowing. Open interest in the derivatives market has declined by about 30% over the past week, indicating that much of the speculative excess has been flushed out. In the near term, a breakout above $1,985 and, on the downside, defense of $1,905 are identified as the key triggers that will determine the next trend.

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