Ethereum’s Dip: Big Bucks Buy Low?

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While the small investors, with their delicate sensibilities, are thrown into a state of perturbation over Ethereum’s sharp 37% decline, the discerning few among the institutions seem to view this as a most opportune moment.

At press time, Ethereum [ETH] was trading around $2,013, a level that would send the faint of heart into a frenzy. Yet for the bold and the well-heeled, this crash is but a trifling obstacle, a mere stepping stone to greater fortunes.

Arthur Hayes and Tom Lee’s Bitmine Adds Ethereum

According to Lookonchain, Arthur Hayes deposited 1,000 ETH, worth approximately $1.99 million, into Bybit, a gesture of confidence amidst the turmoil.

Meanwhile, Tom Lee’s Bitmine acquired another 45,759 ETH, valued at $90.83 million, swelling its holdings to 4,371,497 ETH, a sum that would make even the most frugal of hearts swoon.

With an average entry price of around $3,821, the firm now sits on an unrealized loss of more than $8.03 billion-a most grievous loss, though not yet realized, and one that would test the patience of even the most stoic of investors.

This occurs as Ethereum continues to waver near key levels. Still, despite the weak price action, some analysts remain optimistic, their prognostications as grand as they are dubious.

For instance, Borovik noted,

“ ETH is down 33% since the start of 2026. I think ETH is bottoming here. I predict $10,000 ETH by the end of 2027.”

Does Ethereum Look Weak or Healthy?

Ethereum is now in what analysts call a phase of market coldness. Data from Alphractal shows that Ethereum’s Market Temperature, which tracks indicators like MVRV, RVT, and NUPL, is near zero.

In simple terms, this means market emotions have almost disappeared, a state of profound inactivity that would baffle even the most ardent of speculators.

In the past, such cold phases usually appeared after retail investors had already sold in fear. When this happens, greed fades and is replaced by hesitation and low confidence, leaving the market quiet and depressed.

Ethereum’s price reflects this shift. After falling from $4,500, ETH is now stuck near $2,000 with no strong rebound. Instead of a swift recovery, prices are moving sideways, showing weak buying interest-a most unprofitable state for the eager investor.

What Does the MVRV Ratio Tell Us About ETH’s Next Move?

The red and yellow zones on the chart show how different traders are feeling.

The red zone tracks people who bought Ethereum in the last 30 days, and it is deep in the negative. This means most recent buyers are losing money, which makes them frustrated and more likely to sell when prices rise.

The yellow zone tracks short-term traders over 24 hours. Presently, it is flat and quiet, showing that even day traders have lost interest. Normally, strong bottoms come with big moves in this area, but that is missing.

Together, these signals point to a low-energy market. Long-term buyers are stuck in losses, and short-term traders are inactive-a most lamentable state for the enterprising soul.

What’s More?

This follows Jeffrey Huang’s recent move, where he was taking a much riskier path. According to Lookonchain, Huang lost over $27.5 million in just 20 days and has been liquidated 145 times since late 2025.

Yet, instead of cutting risk, he has become more aggressive, selling spot holdings to fund highly leveraged bets on Bitcoin, Ethereum, and HYPE-a most audacious endeavor, though one that may not end well.

All these movements show that Ethereum is in a tough spot, and if buyers fail to regain confidence soon, even the strongest investors may come under serious pressure-a situation as precarious as it is amusing.

Final Summary

  • Hayes has a history of buying when sentiment is weakest and prices look most risky, a habit as peculiar as it is profitable.
  • The $2,000 level has become a key psychological and technical support for Ethereum, a beacon of hope for the desperate.

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2026-02-19 02:35