Ethereum plunged to $1,740 on February 6 after breaking through critical support at $1,800, completing a predicted bearish pattern. The cryptocurrency rebounded 23% within days, but technical indicators reveal weak buying momentum. A hidden bearish divergence shows rising RSI alongside lower price highs, signaling persistent seller dominance.

On-chain data exposes troubling dynamics behind the recovery. Short-term traders drove the bounce, with their net unrealized profit/loss metric improving 35% from capitulation levels. Meanwhile, long-term holders accelerated selling, with outflows jumping 82% to -19,399 ETH in four days. This mirrors March 2025's false bottom pattern rather than April's durable recovery when prices bottomed at $1,470.

The 12-hour chart shows Ethereum forming a bearish 'pole and flag' pattern, with weak on-balance volume confirming lackluster demand. Analysts warn a breakdown could trigger a 50% slide toward $1,000. Key resistance sits at $2,150, while losing $1,750 support would expose the $1,500 zone. Until buying volume strengthens and long-term holders stop divesting, downside risks prevail.