Ethereum Price Outlook: Short-Term Weakness Clashes With Long-Term Optimism
Ethereum remains under sustained pressure, with price continuing to move lower despite growing disagreement among analysts about what this phase actually represents.
Key Takeaways
- Ethereum remains under short-term pressure near $2,250 after losing key support, but higher-timeframe structure is still viewed as constructive by several analysts.
- Heavy liquidations, led by long positions, have accelerated the drop and flushed leverage, while RSI and MACD suggest downside momentum may be starting to slow.
- Analysts remain divided: short-term trend is bearish, but longer-term views frame the move as base-building rather than a cycle top.
ETH is trading near the $2,250 zone after several consecutive days of weakness, marking a decline of almost 25 percent over the past week. The move has weighed heavily on broader market sentiment, as traders struggle to determine whether this is the start of a deeper bearish leg or simply a painful but temporary reset within a larger uptrend.
The recent slide has been orderly but persistent, suggesting distribution rather than panic. Still, the lack of a strong bounce so far keeps short-term momentum tilted to the downside.
Short-Term Downtrend, Long-Term Structure Intact
According to Michaël van de Poppe, Ethereum’s recent price action has clearly broken beneath a crucial support area that had been holding for weeks. On lower timeframes, he describes the structure as decisively bearish, with lower highs and lower lows now firmly in place.
However, Van de Poppe stresses that this weakness looks very different when viewed through a higher-timeframe lens. On longer horizons, Ethereum remains in an uptrend that began after the April 2025 bottom. From that perspective, the current decline appears less like a trend failure and more like a process of searching for stronger higher-timeframe support before a potential reversal back to the upside.
ETH/BTC Becomes the Key Battleground
Rather than focusing solely on the dollar chart, Van de Poppe places heavy emphasis on Ethereum’s performance relative to Bitcoin. He identifies the ETH/BTC support zone between 0.025 and 0.0265 BTC as the most important area to watch. Notably, Ethereum has already retraced more than half of the move toward that zone, suggesting much of the relative weakness may already be priced in.
If buyers step in around that region and defend it, Van de Poppe believes it could mark the foundation for renewed strength later in the cycle. On the flip side, he notes that a decisive reclaim of 0.0325 BTC would signal a strong breakout and a clear continuation of Ethereum’s broader uptrend versus Bitcoin, though he views that outcome as less likely in the near term.
Liquidations Add Fuel to the Downside
Short-term pressure has been intensified by a wave of forced selling across derivatives markets. Over the past 24 hours, Ethereum liquidations totaled roughly $93 million, according to data from CoinGlass. Long positions absorbed the majority of the damage, accounting for more than $67 million, while short liquidations remained comparatively modest.
This imbalance indicates that leveraged long traders were caught offside as price slipped below key technical levels. While painful, this type of liquidation-driven flush often reduces excess leverage and can help stabilize the market once the forced selling subsides.
Ethereum Is Building a Base, Not a Top
Offering a more structural and longer-term view, Merlijn The Trader argues that Ethereum’s current behaviour fits the profile of a market building a base rather than forming a cycle top. He points to repeated strong reactions at major price zones, including $1,500, $2,200, and $4,000, as evidence of a developing higher-low structure.
In his analysis, the rejection near $5,100 earlier in the cycle did not signal the end of the bull market but instead served to reset momentum. He describes this phase as a typical bull-market reload, where price compresses and consolidates before the next expansion. From that broader perspective, Merlijn identifies $10,000 as the next major expansion zone if the long-term structure continues to play out.
ETHEREUM IS BUILDING A BASE, NOT A TOP.
Strong reactions at:
– $1,500
– $2,200
– $4,000Classic higher-low structure.
Rejection at $5,100 just reset momentum.
This is how bull markets reload
Next expansion zone $10,000. pic.twitter.com/8sLuyWZYGp
— Merlijn The Trader (@MerlijnTrader) February 3, 2026
Momentum Indicators Show Oversold Conditions Emerging
Technical indicators are beginning to reflect the growing tension between short-term weakness and potential stabilization. On the 4-hour chart, RSI has slipped into the low 30s, hovering near oversold territory. Historically, such readings often precede relief rallies or periods of sideways consolidation, especially when selling pressure begins to slow.
MACD remains deeply negative, confirming that downside momentum is still dominant. However, the histogram has started to flatten, suggesting that bearish momentum may be losing intensity rather than accelerating. This combination points to a market that is still weak, but possibly approaching a point where sellers begin to lose control.
A Market at a Crossroads
Ethereum now finds itself at a critical juncture. In the short term, price action remains under pressure, driven by broken support levels and liquidation-driven selling. At the same time, higher-timeframe structure, relative-value analysis, and long-term technical frameworks continue to support the idea that this move may be a consolidation phase rather than a structural breakdown.
Whether Ethereum stabilizes near current levels or pushes deeper into long-term support zones will likely determine the next major move. For now, volatility remains elevated, conviction is split, and the battle between short-term sellers and long-term accumulation is clearly underway.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
