On 19 February, Ethereum’s price was trading close to $1,932 after falling towards the $1,700s earlier in the month. The decline had been brutal. However, the reaction that followed felt structurally different.
Aggregated altcoin trading volume against stablecoin pairs expanded aggressively while the prices lagged. Strong buy walls formed repeatedly under the price. Retail capitulated into fear-driven selling too.
Therefore, the real question emerged – Was this quiet accumulation beneath visible panic?
Ethereum’s [ETH] price drop towards $1,700 forced widespread liquidations across altcoins. Weak structures collapsed quickly. Sentiment turned hostile and unforgiving as well.
However, the volume surged during this weakness, instead of fading. That divergence mattered. High participation at depressed prices is often a sign of absorption.
In particular, stablecoin-quoted altcoin volume dwarfed early-cycle 2019-2020 levels. That scale was undeniable. Due to these developments, the structure shifted from pure decline to one of compression.
Buy walls repeatedly absorbed aggressive selling when failure to do so would have triggered further collapse. Instead, the altcoin’s price stabilized on the charts.
OTHERS/BTC broke above a long-standing bullish wedge on the weekly chart. That break followed years of lower highs. The shift was not cosmetic.
Meanwhile, the MACD told a harsher story. Since 2021, it has flipped red after every breakout attempt. Momentum failed repeatedly, and every spark was crushed.
Notably though, the MACD has now stayed green for two consecutive months for the first time in nearly six years. Previously, only the 2021 altcoin season sustained green momentum. Other breakout attempts were sold aggressively.
After years buried in negative territory and extremely oversold conditions, the indicator has finally begun to wake up. The RSI echoed that shift, climbing steadily from oversold levels and printing higher lows.
However, not everyone might be convinced. A full altcoin season requires broader confirmation. Many believe that without Bitcoin holding above the Weekly EMA 200, any rally would remain fragile.
Hence, confidence still depends on Bitcoin holding above the Weekly EMA 200.
The ALT/BTC echoed similar strength with a persistent green MACD histogram. That consistency had been absent for years. Therefore, momentum might just be shifting gradually.
However, the prices still remain below prior cycle highs. The structure may be constructive, but incomplete too. February’s close will carry heavy weight for the altcoin.
