Ethereum’s 6% Drop: Correction or Start of a Bigger Downtrend?

Key Highlights

• Ethereum (ETH) dropped nearly 6%, signalling a bearish trend, reaching $1,867 on Monday, February 23, 2026.
• ETH price remains stuck between $1,800 and $2,400, and on-chain data shows 30% of ETH staked, restricting supply.
• Technical indicators indicate a downward trend; however, MACD divergence shows a potential bottoming process.

Ethereum Entering an Intensive Bearish Trend

Ethereum (ETH) prices have dropped by nearly 6%, amplifying the bearish trend. The key resistance is near $1,985, and a crucial breakthrough is required to reverse the trend. Analysts and investors are closely monitoring whether ETH can break out of this level. If the price does not break this level, it could trigger another decline.

The market is in a narrow range, defined by support at $1,800 and a resistance level near $2,380-$2,400. According to price data, Ethereum has been stuck at this level for about two weeks, without indicating a clear direction.

The price movements show a lack of confidence among buyers, as every attempt to reclaim higher levels has been met with resistance. About 30.1% to 30.8% of all ETH is currently staked, representing over 36-37 million ETH. The structural tightness can provide a long-term positive for ETH’s value proposition. Increasing institutional demand can support ETH’s future prices in spite of the current volatile phase.

Ethereum (ETH) Price Decline Technical Analysis

Currently, Ethereum is experiencing a bearish trend, driven by a combination of bearish technical signals and heightened market fear. Price is moving below all major moving averages. It also remains in the lower half of its Bollinger Band range, indicating a bearish structure.

The RSI is at 28.21, which is in the oversold zone. If a strong downward trend continues, it signals persistent weakness. The MACD remains deeply negative at -6.46, indicating a “Sell” signal and a bearish trend.

What Factors are Analysts Closely Watching?

Analysts and investors are closely monitoring the resistance level near $1,985 as a break above this could shift overall sentiment. If bull actions can push ETH over the threshold, the next target level would be $2,000. If the breakout is successful, it could drive Ethereum towards $2,050 or even $2,120 in the short term.

On the other hand, if ETH fails to clear $1,985, a fresh decline will start. The immediate support on the downside is near $1,935, followed by a stronger level at $1,905. A further breakdown below $1,905 could extend the correction towards $1,840 and potentially to $1,820.

According to predictions based on current market conditions, there is a 49-50% chance that the ETH price will drop to $1,250. It would reflect extreme bearish sentiment.

Market response

As Ethereum is going through a bearish trend, the overall market has been defensive. Investors are taking a risk-off position and shifting the capital toward Bitcoin and stablecoins. Ethereum spot ETFs have recorded five consecutive weeks of net outflows, including $123 million withdrawn last week. Large whale wallets have also begun distributing their holdings, selling nearly 1.5% of their total reserves since the beginning of the year.

The market concern was also raised when Ethereum co-founder Vitalik Buterin sold approximately 1,869 ETH. On the other hand, BlackRock has seeded a staked Ethereum trust plan to take up to 95% of the held ETH. This trend indicates a growing preference for yield-bearing structures among institutional players. Analysts also warned that if Bitcoin (BTC) fails to hold its support near the mid $64,000, ETH may take a deeper retracement towards $1,700.