Ethereum Weekly Price Forecast: Trend Research Capitulates, BitMine's Thomas Lee Sees V-Shaped Recovery

Ethereum (ETH) fell below the $2,000 psychological level for the first time in months, signaling growing bearish pressure in the market. The price decline reflects a broader correction in risk assets and has intensified selling activity across the crypto space. As of February 7, 2026, ETH is trading at $1,973, a significant drop from its peak in August 2025.

The move below $2,000 marks a critical shift in market structure. It has intensified concerns over continued weakness in Ethereum's price action. The coin remains in a descending channel on the daily chart, with lower highs and lower lows reinforcing the bearish trend. Moving averages, including the 50-day and 100-day EMAs, now sit well above current price levels.

The market reaction has been mixed. While some investors are seeing this as a potential buying opportunity, others are accelerating distributions. Exchange inflows for ETH have increased sharply, reflecting heightened selling pressure. This trend has been observed alongside broader market weakness in Bitcoin and other altcoins.

Why Did This Happen?

Ethereum co-founder Vitalik Buterin recently stated that the rollup-centric roadmap he previously supported 'no longer makes sense.' This marks a significant shift in strategy, as Buterin now argues for a more decentralized approach to scaling the Ethereum mainnet. He highlighted that progress in Layer 2 networks has been slower than expected, and some projects may never reach full decentralization.

The change in strategy has created uncertainty for investors. Buterin also emphasized that Ethereum's base layer has scaled effectively following recent upgrades, reducing the need for off-chain solutions. This shift in focus has led to a reevaluation of the role that Layer 2 networks play in the Ethereum ecosystem.

How Did Markets React?

The market has responded with increased bearish momentum. Ethereum's price has been trading below its realized cost basis, which is currently at $2,310. This has led to losses for many investors, with over $1.5 billion in losses recorded over the past week.

Retail investors and whales have been offloading significant amounts of ETH, with some large holders depositing millions of dollars' worth of the token into exchanges for potential sale. Trend Research has moved over $738 million worth of ETH to Binance in recent days.

The Relative Strength Index (RSI) and Stochastic Oscillator for ETH are in the oversold region on the daily chart. This suggests that the bearish momentum is still intact, and a reversal is unlikely unless there is a strong buying signal.

What Are Analysts Watching Next?

Technical analysts are closely monitoring key support and resistance levels. The immediate support is around $1,900, while the next level is $1,800. A daily close below $1,900 could accelerate losses toward the $1,800 zone.

On the upside, any rebounds are likely to face resistance at $2,000 and $2,100. A sustained move above $2,250 could signal a potential short-term reversal. However, most analysts remain cautious, with some projecting a continued decline toward $1,730 if support at $2,100 is breached.

Market participants are also watching for signs of increased institutional buying. Spot Ethereum funds have seen notable inflows in early February 2026. This could indicate renewed interest from long-term investors.

Whale activity remains a key area of focus. While large holders have been accumulating ETH, this has not translated into a meaningful price recovery. The divergence between whale behavior and broader market sentiment highlights the complexity of the current market environment.

The Ethereum price forecast suggests a cautiously optimistic outlook for the coming weeks. The base case target is a recovery to the $2,500–$2,700 range by March 2026. However, this is contingent on ETH establishing support above $1,960. A failure to do so would invalidate the bullish thesis and open the door to further declines.