Feb 10, 2026
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BEARISH 📉 : Ethereum Faces Sustained Pressure as Exchange Supply Tightens
Ethereum Stabilizes Around $2,000 Amid Market Uncertainty
- The broader crypto market is in a critical consolidation phase, with Ethereum attempting to stabilize around the $2,000 level.
- Price action remains fragile due to macro uncertainty, liquidity shifts, and persistent selling pressure.
- The current environment mirrors past transitional periods with weakened market structures before directional moves.
Exchange Dynamics: Bitcoin vs. Ethereum
- CryptoQuant reports highlight differing exchange-flow dynamics between Bitcoin and Ethereum.
- Bitcoin deposits on exchanges have increased, reaching levels last seen in 2019. However, much of this is for custody rather than selling.
- Ethereum's exchange-held supply is at levels similar to mid-2016, indicating a tighter liquid float possibly due to long-term holding, staking, or DeFi use.
Liquidity Shift and Potential Market Impacts
- Ethereum's low exchange balances suggest potential liquidity shifts, posing questions about sustained supply constraints.
- The increase in Ethereum’s OTC balances remains modest compared to exchange-held supply.
- Further tightening of exchange and OTC liquidity could lead to sharper price reactions to demand changes.
Technical Analysis: Bearish Momentum Persists
- Ethereum is under pressure after losing key support levels, briefly testing the $2,000 zone.
- The market structure has deteriorated since late 2025, with ETH below its major moving averages.
- Volume spikes indicate forced selling, often linked to liquidation cascades.
- The $2,000–$2,100 region acts as fragile support; losing it could lead to deeper retracement levels around $1,700 or $1,500.
- Momentum indicators suggest caution until Ethereum reclaims key moving averages and establishes higher lows.