Ethereum has stabilized around the mid-$1,800s following a February liquidation cascade, with sustained downside pressure evident. Technical analysis shows the price trading within a descending channel near key support. On-chain data indicates a defensive derivatives market, with negative funding rates suggesting bearish exposure and potential for a short squeeze if spot demand returns.
Ethereum remains under sustained downside pressure after the February liquidation cascade, with the price now stabilizing around the mid-$1,800s. The broader structure still reflects a cyclical correction rather than a completed bottom, but short-term momentum has cooled as the market attempts to build a base above a major higher-timeframe demand region.
On the daily chart, ETH trades within a well-defined descending channel near the $1,800–$1,850 range. The breakdown from the $2,300–$2,400 support block and rejection below key moving averages confirm a bearish medium-term trend.
The immediate technical focus is the horizontal demand band around $1,750–$1,800. Sustained consolidation above this area could allow a mean-reversion bounce toward the $2,000–$2,200 zone.
On the 4-hour chart, an ascending support line has been broken, and the asset is consolidating just below that trendline. Short-term momentum is weak but no longer accelerating lower, with the RSI flattening after an oversold print.
Perpetual futures positioning reflects a markedly defensive stance, as funding rates across major exchanges have flipped sharply negative. This indicates that short positions are paying longs and that the derivatives market is skewed toward bearish exposure.
This shift followed a prolonged period of mostly positive funding during the prior uptrend, suggesting the recent move was driven by aggressive shorting and long liquidations. While persistent negative funding can reinforce downside pressure, it also creates preconditions for a short squeeze should price stabilize.
