The current market conditions suggest that the price of Ethereum could experience a further decline of approximately 17% before it reaches the critical support level at $1,650. As of February 10th, the price of ETH has dropped by 5%, reflecting ongoing uncertainty among investors regarding the sustainability of recent market movements.
The decline in the MVRV Z-Score to -0.42 signals increasing financial stress among holders, indicating that many are underwater on their investments. Such a negative Z-Score typically reflects a capitulation phase, where selling pressure mounts as holders seek to cut losses. Historically, this metric has reached more extreme lows during significant bear markets, suggesting that current conditions, while negative, are not yet at their most severe.
Since last month, Ethereum”s price has plummeted from $3,400 to $2,049, marking a substantial loss of 48.8%. Although there was a brief rally, the price struggles to maintain levels above $2,000. This indicates robust resistance at $2,150, which could deter buying activity and lead to additional selling pressure.
The Relative Strength Index (RSI) has also dipped to 29%, indicating strong bearish momentum. However, it has entered the oversold territory, suggesting that while further downside is possible, the current correction may be reaching its limit. The prevailing bearish trend aligns with the broader market sentiment observed in early 2026.
Should the price continue to drop, the anticipated retest of the support at $1,650 could serve as a crucial point for buyers. This level has historically functioned as a significant accumulation zone during previous downturns, offering a potential floor for price stabilization. If Ethereum can maintain its position above this threshold, it may set the stage for a future reversal in momentum.
