As the month draws to a close, Ethereum (ETH) is trying to finish February above the key $2,000 level. Some analysts believe this monthly close could set the direction for the leading altcoin’s price.
Ethereum’s Path May Be Set This Weekend
On Thursday, ETH dipped from recent highs to retest $1,980 before recovering. The cryptocurrency had jumped 11% on Wednesday morning, hitting a ten-day peak of $2,148, and then settled around the important $2,000 support level.
Amid this bounce, market analyst Trader Tardigrade pointed out that ETH has temporarily reclaimed a critical monthly level it had lost on shorter timeframes. The asset is trading back above a multi-year trendline, hinting at a potential recovery rally if it holds.
According to the analyst, Ethereum has a consistent pattern: “every time price holds above this ascending support trendline, it launches into a parabolic rally.” The chart shows a similar trendline between 2018 and 2020, from which the altcoin bounced and began a massive year-long rally toward its previous all-time high. ETH is now retesting a trendline that started forming in 2022. “If it holds here, history says we’re gearing up for another explosive climb,” the trader stated.
Similarly, analyst Rekt Capital noted that this multi-year trendline has “been a structural level that has defined the broader macro trajectory for several years.” He suggested that if Ethereum closes the month above this trendline (around $1,960-$1,970), the price could rebound toward the $2,250-$2,500 range. However, he warned that this key horizontal zone has historically “not been kind to Ethereum across cycles.”
Could a Deeper Correction Be Ahead?
Rekt Capital explained ETH’s past behavior around this level: in 2022, once the price broke below this horizontal region on the monthly chart, it continued to fall. Then, after closing below it again in early 2025, ETH retested the level, turned it into resistance, and resumed its correction toward the April 2025 lows near $1,385.
“So structurally, the green region remains a likely candidate for resistance unless Ethereum Monthly Closes above it and successfully turns it into support,” the analyst said, adding that this seems less likely in the current bear market.
He further warned that if ETH’s monthly close falls below the multi-year support trendline, the price could revisit the $1,570-$1,670 horizontal zone—a prior demand area. “We have already seen downside wicking toward that orange region, but not a clean, picture-perfect retest. Losing the trendline would likely force price into that orange region more decisively and potentially even result in its loss as support,” he added.
Rekt Capital emphasized that if the macro uptrend is broken, there is limited buying momentum to prevent further declines over time.
At the time of writing, ETH is trading at $2,026, up 4.7% over the past week.
Frequently Asked Questions
FAQs Ethereums Critical Support Level and Future Outlook
Beginner Questions
What is a longterm support level in crypto
A longterm support level is a price point where an asset like Ethereum has historically stopped falling and started to bounce back Its like a floor that buyers have consistently defended over a long period
Why is this specific support level so important for Ethereum
If Ethereum breaks and stays below this key historical floor it could signal a major loss of confidence potentially leading to a much steeper and longer price decline Holding above it suggests the longterm uptrend might still be intact
What happens if Ethereum bounces back from this level
If it bounces back it means buyers have stepped in strongly at the support This could lead to a significant price recovery rebuilding investor confidence and potentially starting a new upward trend
What happens if Ethereum falls further below this level
If it falls and consolidates below this level it means the support has failed This often triggers more selling as it becomes a new resistance ceiling and could lead to a search for a much lower support level
Im new to this How can I follow this situation
You can monitor Ethereums price on major crypto tracking websites or apps Watch for whether the price holds above the widely discussed level
Intermediate Market Dynamics Questions
What factors would help Ethereum bounce back
Key factors include a broader crypto market recovery positive developments in Ethereums technology increased network usage and large investors buying at the support level
What factors could cause it to fall further
Negative factors include prolonged bearish sentiment across all markets regulatory crackdowns major security issues on the network a decline in decentralized app activity or Bitcoin leading a marketwide downturn
Is this just about price or does it affect the Ethereum network itself
Primarily price and sentiment The Ethereum network continues to operate regardless However a severely depressed price for a long time can reduce developer incentive and slow ecosystem growth indirectly affecting the networks health
How do traders use this support level
Many traders set buy orders near the support level anticipating a bounce