Ethereum Loses Support, Drifts as Both Bulls and Bears Capitulate

▲ Ethereum (ETH)

Ethereum (ETH) has entered a dull sideways range without clear direction following a sharp decline, pushing both bullish and bearish investors to the brink of exhaustion.

According to crypto-focused media outlet U.Today on February 20 (local time), after suffering a steep drop that broke through key support levels, Ethereum has failed to find rebound momentum and is undergoing price compression near recent local lows. The current chart structure is widely seen as remaining in a temporary stabilization phase rather than signaling a strong recovery. Volatility has dropped significantly compared to the previous sell-off, with noticeably shorter candle bodies appearing on the chart.

Market experts analyze that Ethereum’s movement represents a typical sideways consolidation phase marked more by cautious observation than aggressive accumulation by large investors. With neither buyers pushing prices higher nor sellers driving further declines taking an assertive stance, the asset is drifting in neutral territory. The stalemate continues without clear signs of either a definitive reversal or further breakdown.

If this tedious sideways channel persists, Ethereum could remain trapped within the range far longer than investors anticipate. Historically, such periods have served as market reset phases that flush out excessive leverage and cool speculative sentiment. However, prolonged consolidation tends to limit short-term price surges and demands sustained patience from market participants.

The broader price trend still slopes downward, suggesting that the underlying market direction has not fundamentally changed. Despite temporary price stabilization, no meaningful shift in momentum or strong breakout attempt has been observed. For the sideways range to evolve into a genuine accumulation zone, a recovery in trading volume and a decisive breakout above key resistance levels must come first.

Until a clear catalyst emerges to determine Ethereum’s next directional move, the asset appears likely to continue compressing energy within its sluggish trajectory. Investors are closely monitoring changes in resistance levels and trading volume trends, waiting for a definitive market signal rather than rushing into premature positions.

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