Ethereum Holds at Five‑Year Demand Zone, Analysts Say Momentum May Be Building
By [Your Name], Crypto News Desk – February 24 2026
Ethereum (ETH) has slipped back into price territory that has historically served as a long‑term accumulation zone. Several market observers now argue that the cryptocurrency is poised at a five‑year “demand zone,” a level that, while currently bearing bearish pressure, could set the stage for a renewed upside move.
Current price action
- Spot price: ETH is trading around $1,830–$1,850 in early Asian hours, having retreated from a brief rally above $1,900 earlier this week.
- Historical context: The level mirrors the lows seen in April 2025, when the token briefly fell under $1,500, and aligns with the broader range spanning July 2022 to November 2023—a period marked by a protracted bear market and sustained buying pressure from long‑term holders.
- Potential short‑term outlook: With the price hovering just above its February 6 low, technical indicators suggest limited upside potential in the immediate term. However, some analysts believe the market may linger in this range for several months before any decisive breakout.
Analyst perspectives
| Analyst | Key Observation | Rationale |
|---|---|---|
| Merlijn The Trader (Twitter) | ETH is sitting in a five‑year demand zone that has historically been an accumulation area. | Past price cycles show that the current range tends to foster buying rather than distribution, implying that “exposure before expansion” is a strategic entry point. |
| Sykodelic (Twitter) | Weekly charts reveal a “hidden bullish divergence” on the RSI. | The RSI is forming lower lows while price makes higher lows, indicating underlying strength that may have been absorbed by sellers. The last occurrence of this pattern preceded a 100 % rally in ETH. |
| StockTrader Max (X) | Ethereum should be viewed as a multi‑year holding, not a quick‑flip asset. | Expecting large short‑term gains is likely to lead to disappointment; the token’s place in diversified portfolios is better justified over a longer horizon. |
| Tom Lee, Fundstrat | Positive macro tailwinds exist, yet current price action remains weak. | While broader crypto sentiment is improving, price momentum has yet to catch up, reinforcing the need for patience. |
On‑chain activity and institutional interest
- Staking activity: BitMine’s Ethereum DAT has added 51,162 ETH to its staking balance over the past week, signaling confidence in the network’s long‑term yield generation. The firm reiterated its focus on “methodically executing our treasury strategy” and accumulating ETH at prevailing levels.
- Supply concentration: Recent data shows that staking contracts now control over 50 % of the total ETH supply for the first time, a development that could further anchor price stability while reducing circulating liquidity.
What the demand zone means for traders
- Accumulation vs. distribution: Historical price action suggests that the current range has been a net buyer’s market. Traders looking for “perfect entries” should instead prioritize exposure ahead of any potential upside expansion.
- Technical signals: The hidden bullish divergence on the weekly RSI may serve as an early warning of strengthening momentum, even if daily charts remain subdued.
- Risk management: With ETH still near its recent lows, volatility is likely. Position sizing and stop‑loss placement remain essential, especially for short‑term participants.
- Long‑term outlook: If the demand zone holds, the next significant catalyst—whether a major protocol upgrade, macro‑economic shift, or broader crypto market rally—could trigger a substantial move above $2,000, echoing previous post‑accumulation cycles.
Key takeaways
- Price position: ETH is trading near a historically significant five‑year demand zone, around $1,830.
- Technical nuance: A hidden bullish divergence on weekly RSI hints at underlying strength, reminiscent of past 100 % rallies.
- Fundamental support: Institutional staking activity and a record share of ETH locked in validators bolster the case for long‑term accumulation.
- Strategic view: Analysts urge investors to adopt a multi‑year horizon, treating current levels as a buying opportunity rather than a short‑term speculation target.
- Outlook: While immediate upside appears limited, the convergence of technical, on‑chain, and macro factors suggests that a breakout could be on the horizon, provided price stability persists through the demand zone.
The cryptocurrency market remains highly volatile; readers should conduct their own due diligence before making investment decisions.
Source: https://cryptopotato.com/ethereum-is-sitting-at-5-year-demand-zone-according-to-analysts/
