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Ethereum’s current price dip looks similar to the pattern seen before the 2021 bull run.
On-chain data shows long-term holders are accumulating ETH instead of selling.
Macro conditions still add risk, but liquidity signals hint at a possible rebound.
Ethereum price has seen a sharp drop in early February 2026, falling from recent highs and trading around $2,290–$2,300. This move pushed ETH more than 15% lower from its late January peak and briefly brought the asset close to the $2,000 level.
The sudden sell-off created fear in the market, but many analysts say this kind of pullback looks very similar to what happened before the major rally in 2021.
Ethereum also corrected strongly before starting a long upward run that lasted several months. Short-term charts now show weak momentum, yet bigger trend signals suggest that buyers are slowly stepping in again.
A key reason for the comparison is the global liquidity cycle. In 2021, a rise in monetary supply boosted small-cap stocks, pushing crypto prices higher. A similar sequence is happening again.
A recent set of data shows liquidity improving, followed by movement in the Russell 2000 index, which often acts as an early signal for risk assets. Ethereum usually reacts after this shift. The same delay was observed before the 226% ETH rally from March to November 2021.
Market watchers believe this repeating structure is important. When liquidity expands and traditional markets stabilize, Ethereum often follows with a delayed but strong upside move. This is why the current dip is being viewed as part of a larger setup, not the end of the trend.
Also Read: Ethereum in 2026: Trouble Ahead or Legendary Rebound Incoming?
Blockchain data also supports this view. The realized price of accumulation addresses is rising near important support levels. This means long-term holders and staking participants are buying instead of selling.
Rather than panic, large wallets appear to be absorbing ETH supply during the drop. This behavior was also seen in early 2021, when Ethereum price stayed weak for a short time, but network confidence stayed strong.
Ethereum’s supply is becoming tighter due to burn mechanisms and growing Layer-2 usage. These changes slowly reduce available tokens in circulation, which can help price once demand returns.
A stronger US dollar and uncertainty around central bank policy have pushed investors away from risky assets. Both Bitcoin and Ethereum were affected by this pressure.
ETH options data shows heavy liquidations near the $2,200–$2,400 price range. Many traders using leverage were forced out of positions during the dip.
Historically, this kind of clearing event removes weak hands and creates space for a stronger rebound. Once selling pressure slows down, even small inflows can push ETH price higher due to lower resistance.
Analysts say the next key factor is whether liquidity indicators and the Russell 2000 confirm a recovery. If those signals turn positive, Ethereum could see another leg upward, similar to past cycles.
Ethereum’s 2026 roadmap focuses on Layer-2 scaling, fee improvements, and long-term protocol upgrades. These updates aim to make transactions cheaper and faster while keeping the network secure.
Such progress supports long-term value for ETH, even when price struggles in the short run. Developers continue building, and adoption is slowly increasing across decentralized finance and applications. This gives strength to the idea that the current dip is temporary rather than structural.
Also Read: Solana vs Ethereum: Why SOL is Gaining More Momentum in 2026
The present decline reflects many elements seen before the last bull run: improving liquidity, equity market signals first, on-chain accumulation, and a sharp but controlled correction. None of this guarantees another massive rally, but it explains why many participants see the dip as a buying opportunity instead of a breakdown.
Ethereum trades near $2,290 at press time, with a $46 billion daily volume and a dip of over 15% from recent highs. The market now sits between macro fear and structural strength.
If liquidity continues to improve and accumulation stays strong, the current dip might be remembered as the same kind of pause that came before the 2021 surge.
1. Why is Ethereum price falling right now?
Ethereum price dropped due to macro pressure, such as a strong dollar, interest rate worries, and heavy liquidations in the derivatives market.
2. How is this dip similar to the last bull run?
In 2021, ETH corrected sharply before liquidity improved and price surged, and a similar liquidity and accumulation pattern is forming now.
3. What does on-chain accumulation mean for ETH?
It means large and long-term holders are buying during the dip, which often supports price recovery over time.
4. What price level is ETH trading at currently?
Ethereum is trading around the $2,290–$2,300 range after falling more than 15% from recent highs.
5. Is this dip bullish or bearish for the long term?
Short-term remains volatile, but long-term signals suggest this dip could be a setup for the next upward move rather than a breakdown.
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