Ethereum Price Risks Slide Toward $1,600 as Bearish Momentum Persists

Ethereum price faces renewed selling pressure at $2,150 resistance, signaling a risk of prolonged downtrend.
U.S. spot Ethereum ETFs are under pressure as ETH trades well below investors’ average entry price
The 20-day exponential moving average acts as the first line of defense for sellers to maintain their dominance on ETH price movement.

Ethereum’s recent rebound from last week’s sell-off has already hit a wall at $2,150. The coin price is down 3.9% today showcasing renewed selling pressure and risk of a continued correction from here. With broader market sentiment bearish and spot ETF deep below its average cost basis, the Ethereum price is more likely to extend down to $1,600 before finding suitable support.

Bearish Sentiment Dominates as ETH ETFs Sit Deep Underwater

Social data provided by Santiment shows bearish dominance continuing throughout crypto discussions in early February 2026 with bearish posts greatly outnumbering bullish posts. Retail investors show great fear and hesitation to purchase at low prices – close to $2,000 for ETH and $68,000-$70,000 for BTC – amidst ongoing volatility. In contrast, key stakeholders and institutions appear to accrue supply with little pushback.

In a historical context, periods of high FUD and pessimism are often the sign of capitulation and this provides a high probability of strong price rebounds in subsequent market cycles.

However, the U.S. spot Ethereum ETFs are under much pressure, with the cryptocurrency trading below $2,000— well below the estimated $3,500 average cost basis for inflows into the vehicles. According to Bloomberg ETF analyst James Seyffart, this disparity puts ETH ETF investors in a more difficult position than Bitcoin ETF investors since holders joined these coins at near or below current prices.

Charts from Seyffart’s analysis show drawdowns of over 57% with heavy losses piling up through much of 2025 and continuing on into early 2026. Net inflows peaked at $15 billion in late 2025 but have since fallen to about $11.7-$12 billion, which amounted to only $3 billion in net outflows during the downturn. Assets are still around $12 billion in total, with recent trading reflecting minor fluctuations on a day-to-day basis, rather than heavy liquidation.

Seyffart pointed out that despite deep unrealized losses – averaging several billion dollars negative – most participants have held firm. This is similar to past Ethereum cycles, for example, a drawdown of more than 60% in April 2025. The resilience is remarkable given the severity, though the situation still presents a challenge to conviction with the volatility persisting.

Ethereum Price Poised For 17% Fall Before Hitting Major Support

Since last month, the Ethereum price showed a significant correction from $3,400 to $1,700 low, registering a 48.8%. Last weekend, the coin price rebounded with broader market relief rally but failed immediate resistance at $2,150.

Today’s price drop shows a new lower high formation in ETH’s daily chart, indicating a sell-the-bounce intact from investors. The momentum indicator ADX at 51% accentuates the strong bearish momentum in price, suggesting a risk of prolonged downfall.

With sustained selling, the Ethereum price could plunge another 17% before resting at a long-coming support trendline at $1,630.

Since March 2020, the ETH buyers have managed to recoup their bullish momentum at this ascending trendline, indicating a suitable support to reverse the current downtrend.