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Ethereum Price Forecast: Navigating Current Weakness Toward Long-Term Growth (2026-2040 Projections)

Ethereum Price Forecast: Navigating Current Weakness Toward Long-Term Growth (2026-2040 Projections)

Published:
2026-02-06 21:56:25
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#ETH

  • Technical Support Levels: ETH trading near Bollinger Band lower boundary at $1,887 provides immediate technical support, with MACD suggesting underlying bullish momentum despite price weakness.
  • Market Sentiment Mix: Negative headlines about insider selling contrast with doubling stablecoin inflows, indicating both fear and accumulation occurring simultaneously.
  • Long-Term Trajectory Intact: Current price dislocation from moving averages may represent buying opportunity for long-term investors, with fundamental adoption drivers remaining strong beyond 2026.

ETH Price Prediction

Technical Analysis: ETH Faces Critical Support Test Below Key Moving Averages

According to BTCC financial analyst Ava, Ethereum's current price of $2,055 represents a significant 23.7% discount to its 20-day moving average at $2,695. The MACD reading of 119.98 suggests bullish momentum persists despite recent declines, though the widening gap between price and moving averages indicates potential oversold conditions. The Bollinger Bands configuration shows ETH trading NEAR the lower band at $1,887, which could serve as immediate support. Ava notes that sustained trading below the 20-day MA typically signals short-term bearish pressure, but the MACD histogram remaining positive suggests underlying strength may be building for a potential reversal.

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Market Sentiment: Negative Headlines Compound Technical Weakness

BTCC financial analyst Ava observes that current market sentiment appears heavily influenced by negative news flow. The combination of ethereum struggling below $2,100, Vitalik Buterin's $6.6 million ETH sale, and Aave founder Stani Kulechov's $8.3 million disposition creates a narrative of insider selling during market weakness. However, Ava highlights that stablecoin inflows doubling during the sell-off suggests accumulating interest at lower price levels. The surge in a new DeFi token by 300% indicates capital rotation rather than complete sector abandonment. These factors collectively paint a picture of cautious sentiment with potential for stabilization once selling pressure subsides.

Factors Influencing ETH's Price

Ethereum Struggles Below $2,100 as New DeFi Token Surges 300%

Ethereum's price has faltered, slipping below the $2,100 support level amid broader market rotation. The second-largest cryptocurrency by market capitalization faces selling pressure, with resistance looming NEAR $2,220 and $2,390. Institutional flows appear to be shifting away from large-cap digital assets toward emerging protocols.

Meanwhile, an unnamed DeFi token has captured market attention with a 300% rally in its early growth phase. The surge reflects growing investor appetite for high-upside opportunities beyond established blockchain platforms. Market dynamics suggest capital is migrating from 'digital oil' narratives to newer, lower-cost alternatives.

Trend Research Unwinds Overleveraged ETH Position Amid Market Downturn

Trend Research has accelerated its liquidation efforts, transferring 23,000 ETH ($43.98 million) to Binance to service debt on Aave. The entity has offloaded over 94,000 ETH ($200 million) in two hours, part of a broader strategy to mitigate losses from its Leveraged ETH position.

Arkham Intelligence data reveals Trend Research has deposited 235,588 ETH ($516.16 million) into Binance since the unwind began. The firm's Aave borrowing peaked at $958 million in stablecoins, now pressured by ETH's price decline.

Market observers note the defensive moves highlight systemic risks of overleveraged positions in volatile crypto markets. The sell-off coincides with broader sector weakness, though ETH's fundamentals remain intact.

Ethereum Price Plummets Below $2K Amid Market Turmoil

Ethereum's price has breached the $2,000 threshold, marking a 9% decline in 24 hours and a 40% drop over the past month. The broader cryptocurrency sell-off has erased trillions in market value, with ETH now trading at $1,900. Market analysts attribute the volatility to macroeconomic headwinds and sector-wide deleveraging.

Vitalik Buterin's recent sale of 16,384 ETH contributed to short-term price pressure. The ethereum founder reportedly liquidated holdings to fund ecosystem development, including scaling solutions and hardware improvements. Despite the downturn, some traders view current levels as a potential accumulation zone, citing Ethereum's dominant position in smart contracts and institutional adoption.

Technical indicators suggest critical support near $1,750. A breach could trigger accelerated selling, while holding above this level may establish a base for recovery. Options markets show growing demand for $1,500-$1,800 puts, reflecting trader hedging against further downside.

Stablecoin Inflows Double Amid Crypto Market Sell-Off

Stablecoin deposits on exchanges have surged despite a brutal crypto market downturn. Weekly average inflows have doubled from $51 billion in late December to $102 billion, according to onchain data from Darkfost. The Ethereum network alone shows ERC-20 stablecoin inflows now exceed the 90-day average of $89 billion.

The trend defies expectations during a period of steep liquidations and unwinding leverage. Analysts interpret the capital deployment as a sign of accumulating buying pressure, though overwhelming sell-side activity continues to dominate price action. Market participants appear to be positioning for a potential reversal.

Aave Founder Stani Kulechov Sells $8.3M in ETH Amid Market Downturn

Aave founder Stani Kulechov liquidated 4,503 Ether (ETH) worth approximately $8.36 million as the cryptocurrency dipped below $2,000. The transactions, flagged by Lookonchain and verified through Arkham Intelligence data, occurred at an average price of $1,857 per ETH. The funds were routed through CoW Protocol's settlement contract, with subsequent inflows of USDC to the same wallet.

The sell-off coincides with a broader market correction that has erased a year's worth of gains in just one week. At press time, ETH had partially recovered to $1,963—still above Kulechov's sale price but significantly down from recent highs. The MOVE follows Kulechov's recent high-profile UK property purchase, raising questions about portfolio rebalancing strategies among crypto founders during volatile periods.

Vitalik Buterin Executes Strategic $6.6 Million ETH Sale via CoW Protocol

Ethereum co-founder Vitalik Buterin has liquidated 2,961.5 ETH ($6.6 million) over three days using CoW Protocol's split-swap mechanism. The carefully orchestrated sales—executed at an average price of $2,228 per ETH—avoided market disruption through fragmented transactions that mimicked organic trading activity.

Blockchain analysts noted the transfers coincided with Buterin's $45 million ETH allocation for privacy tools and open-source hardware development. The Ethereum Foundation reportedly plans tighter budgeting, though Buterin's recent movements suggest strategic portfolio rebalancing rather than bearish sentiment.

ETH Price Predictions: 2026, 2030, 2035, 2040 Forecasts

Based on current technical positioning and market dynamics, BTCC financial analyst Ava provides the following Ethereum price projections:

YearPrice Range (USD)Key Drivers
2026$1,800 - $3,500Near-term depends on holding $1,887 support; adoption of Ethereum 2.0 upgrades
2030$4,000 - $12,000Institutional adoption, scalability improvements, DeFi maturation
2035$8,000 - $25,000Mainstream Web3 integration, regulatory clarity, network effect acceleration
2040$15,000 - $50,000+Global settlement layer status, full ecosystem maturity, store-of-value recognition

Ava emphasizes that these projections assume successful protocol upgrades, continued developer activity, and broader cryptocurrency adoption. Current technical weakness presents buying opportunities for long-term investors, though short-term volatility may persist until ETH reclaims its 20-day moving average.

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