Ethereum Hits Critical 5-Year Demand Zone: Could This Signal a Major Market Shift?
So Ethereum has stumbled back down to levels that have been gathering dust for nearly half a decade — a “5-year demand zone,” as Merlijn The Trader calls it. Now, before you panic and imagine your crypto dreams melting away, consider this: historically, this is the kind of place where savvy investors quietly stock up, not bail out. It’s like Ethereum’s playing the long game, cozying up in a bear-market lull, hinting at some potential fireworks ahead. Sure, the price might linger here a bit—maybe even months—but isn’t that the million-dollar question? Are you ready to hold steady when the crowd’s losing faith, or are you chasing quick wins that vanish faster than a viral meme? Let’s unpack why this deep dip might just be the calm before an explosive storm. LEARN MORE.
Ethereum prices have tanked to bear market lows and are currently at a long-term demand zone, say analysts.
“Ethereum is sitting at a 5-year demand zone,” said analyst Merlijn The Trader on Monday. “Historically, this range has been accumulation, not distribution,” he added.
Ether prices are currently back at April 2025 levels, where it crashed briefly below $1,500. They are also back to long-term lows between July 2022 and November 2023, which was a deep bear market and accumulation zone. However, they could wallow around this level for months yet.
Nevertheless, the analyst remains confident that “momentum is building for a potential explosive run.”
ETHEREUM IS SITTING AT A 5-YEAR DEMAND ZONE.
Perfect entries don’t exist.
Historically, this range
has been accumulation, not distribution.You don’t need the exact bottom.
You need exposure before expansion.Big bases don’t drift.
They reprice. pic.twitter.com/0TQ23J2Lnx— Merlijn The Trader (@MerlijnTrader) February 23, 2026
Ethereum is a long-term investment
Investor ‘StockTrader Max’ said that Ethereum is no longer a “get rich quick” asset that turned early holders into millionaires overnight. They also observed that ETH was still in a five-year accumulation zone.
“If you own ETH to make a lot of money by next week or month, then you will likely be disappointed. Ethereum is an asset that should be held in many portfolios with a time horizon of years and NOT months.”
Fellow analyst ‘Sykodelic’ identified a “nice hidden bullish divergence printed on the weekly chart.” A hidden bullish divergence is when the RSI (relative strength index) makes a lower low, but the price makes a higher low. “It means that momentum was actually stronger, but price absorbed it better,” they said before adding:
“The last time this happened, ETH rallied 100%.”
“Crypto has a lot of tailwinds, but the price action is terrible,” said Fundstrat’s Tom Lee.
His Ethereum DAT BitMine continues to buy the dip and stake, adding a further 51,162 ETH over the past week, according to a Monday update.
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“In the midst of this ‘mini crypto winter,’ our focus continues to be on methodically executing our treasury strategy and steadily acquiring ETH and, in turn, optimizing the yield on our ETH holdings,” he said.
ETH Price Dips Again
Ether could not hold above $1,900 and has fallen back to $1,830 at the time of writing during the Tuesday morning Asian trading session.
The asset is now not far away from its Feb. 6 low and does not appear to be ready for a move to the upside yet, despite all of the positive fundamentals.
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