- Ethereum faces a critical test at the $1,850 support level as 220,000 ETH exit exchanges, tightening supply and reducing immediate selling pressure.
- If the support holds, a rebound toward $2,000–$2,100 is possible, while a breakdown could push ETH toward $1,750–$1,690.
Ethereum price is under pressure, testing a key support level while a significant portion of ETH exits exchanges, signaling a potential shift in market dynamics.
Exchange Outflows Tighten Supply
Over the past week, more than 220,000 ETH have been withdrawn from exchanges, the largest net outflow since October 2025. On February 5, Binance alone recorded nearly 158,000 ETH leaving its platform. These withdrawals reduce the immediate sell-side pressure, as ETH moves into private wallets and long-term storage, making it less accessible for quick liquidation.
Meanwhile, accumulating addresses, wallets that hold at least 100 ETH and have no prior outflows, now control 27 million ETH, roughly 23% of the circulating supply. Historically, Ethereum has only traded below the realized price of these wallets twice in nine years, highlighting the reluctance of long-term holders to sell near current levels.
Ethereum Price at $1,850 Support
At press time, Ethereum was trading at $1,975, down 4% in 24 hours and 12% over the past week. The broader trend remains bearish, with ETH down 61% from its August 2025 high of $4,946. The key $1,850 support zone is now crucial; holding this level could spark a rebound toward $2,000–$2,100.
Technical indicators show increased volatility. The 20-period Bollinger Bands have widened, with the lower band near $1,690 and the middle band at $2,490 acting as resistance. The relative strength index (RSI) has fallen below 30, signaling oversold conditions. While momentum remains weak, the pace of decline has slowed.
Upside and Downside Scenarios
If $1,850 holds, Ethereum could stabilize and attempt a rebound. A sustained recovery, however, would require breaking above $2,490 with rising volume and an RSI above 40–45 to indicate a potential trend reversal.
Conversely, a breakdown below $1,850 could push ETH toward $1,750, followed by the lower Bollinger Band around $1,690. Declining open interest and weak spot volumes would reinforce a bearish outlook, keeping short-term traders cautious.
With a shrinking exchange supply and strong long-term holder support, Ethereum is navigating a delicate phase. The $1,850 zone could determine whether ETH stabilizes or continues its downward path, making the coming days critical for investors and traders alike.
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