Ethereum is approaching an oversold area after reaching an unprecedented level.
Ethereum ($ETH) continues to face pressure after entering a bearish phase, having dropped about 60% from its peak in August 2025 at $4,950. The current price is around $1,988, marking a decline for the fourth consecutive week, resulting in billions of dollars in market value loss.
Declining demand for exchange-traded funds (ETFs) for Ethereum and a decrease in futures positions are affecting prices. Instant ETFs registered negative flows of $129 million on Wednesday, bringing the total for February to $224 million. Open futures positions have dropped from over $70 billion last year to $23 billion currently, indicating a decline in investor interest.
At the same time, the Ethereum-linked staking system is experiencing a rebound. For the first time, 30% of the total supply of ETH—approximately 36.8 million ETH (~72 billion dollars)—is staked in pools, secured by around 1 million validators. There are over 4 million ETH in the staking list, while less than 25,000 ETH are waiting to be withdrawn. This shows strong sustained confidence in the network.
Technically, Ethereum may be on the verge of hitting bottom. The inverted head and shoulders pattern is evidence of a bullish reversal. The Relative Strength Index (RSI) is approaching the oversold zone at 30, and the last time it reached that was in April 2025. If support continues, the price could return towards the psychological level of 2,500 dollars.
Market overview:
Price: 1,988 dollars
Market value: approximately 240 billion dollars
Total ETH deposited: 36.8 million (30%)
Total number of validators: approximately 1 million
Despite the lack of performance in the near term, Ethereum's fundamentals remain strong, with an increase in staking and network security, providing potential opportunities for investors.