The post Ethereum bulls fight ‘conviction crisis’ – THESE 3 indicators suggest more drawdown appeared on BitcoinEthereumNews.com.

Ethereum, the second-largest cryptocurrency by market capitalization, continued to post underwhelming performance as it traded around the $2,000 level. This marked the first time since the asset last traded within this range—between the 9th of March and the 8th of May 2025, a 60-day stretch—that price has revisited this zone. The revisit appears tied to the broader market’s muted structure and lack of conviction. Current conditions share similarities with previous cycles. However, while indicators suggest a cool-down phase may be nearing completion, the market’s response remains far from definitive. The possibility of further drawdown still lingers. Ethereum’s cool-down phase Recent analysis indicates that ETH has been undergoing a cool-down phase historically associated with potential price rebounds across multiple cycles. This phase is measured using the Market Temperature metric, which combines three key indicators: Market Value to Realized Value (MVRV) Z-score, Net Unrealized Profit/Loss (NUPL), and the Realized Value to Transaction (RVT) Ratio. The metric identifies a cool-down phase when it drops to the 0 level or below. As of press time, Ethereum’s Market Temperature sat slightly above the zero mark, suggesting that while the market is cooling, further drawdown could still occur before a sustainable recovery emerges. Source: Alphractal On X, Alphratal commented on the implications of trading within this zone: “These zones reflect periods where unrealized profits are reduced, valuation becomes more balanced, and emotional excess fades from the market.” Historically, such conditions have acted as growth catalysts. However, recoveries rarely occur immediately. Markets often require time to rebuild conviction before a rally materializes. In the interim, ETH could trade lower or continue moving within a tight range that caps upside momentum. Demand remains weak Demand remains clearly subdued, increasing the likelihood that ETH continues to trade near the lower end of its range. Sentiment remains cautious across both…

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Filed under: News - @ February 17, 2026 2:24 pm