Ethereum hit its projected breakdown target near $$1,800 in early February before rebounding about 23%, but technical and on-chain data suggest the move lacks strong conviction.
Despite the bounce from a low near $1,740, price action remains weak as volume stays thin and Ethereum trades below key resistance levels that would signal a trend reversal.
Charts show the rebound forming within a broader downtrend, keeping downside targets near $1,500 and potentially $1,000 active if support fails.
On the daily chart, a hidden bearish divergence has emerged as momentum indicators improved while price continued to post lower highs, signalling persistent selling pressure.
Shorter-term charts also show a classic bear flag structure, with on-balance volume failing to confirm the rebound and pointing to limited participation from strong buyers.
On-chain data indicates the rally is being driven mainly by short-term traders, with short-term holder NUPL recovering quickly while long-term holder net selling rose about 82% over four days.
Unless Ethereum reclaims resistance near $2,150 and ultimately breaks above $2,780, analysts warn the broader structure still allows for a deeper correction toward the $1,000 region.
At the time of reporting, Ethereum price was $2,118.10.