Ethereum has extended its recent decline, with price action weakening notably over the past several sessions amid deteriorating market sentiment. The pullback reflects not only broader bearish conditions across crypto markets, but also significant distribution activity from large holders, which has increased downside risk in the short term.
đ Whales Reduce Exposure Aggressively
On-chain data indicates that addresses holding between 10,000 and 100,000 ETH have played a key role in the latest sell-off. Over the past week alone, this cohort collectively sold more than 1.1 million ETH, representing an estimated $2.8â$3 billion in value at current prices.
Large-scale selling of this magnitude places direct pressure on spot markets. As liquidity absorbs increased supply, prices often adjust lower to find equilibrium. Historically, similar whale-driven distribution phases have coincided with accelerated short-term downtrends.
đ On-Chain Metrics Signal Fragile Sentiment
Macro indicators present a mixed but cautious outlook. Data shows that less than 50% of Ethereumâs circulating supply is currently in profit. This threshold is closely watched by analysts, as declining profitability often amplifies fear and uncertainty among market participants.
In the short term, fewer holders in profit can reduce immediate selling pressure, as investors hesitate to realize losses. However, if prices continue to slide, sentiment can shift rapidly, triggering defensive selling to limit further drawdowns.
đ Technical Structure Points to Further Risk
At the time of writing, Ethereum is trading near $2,636, down approximately 12.7% over the past two days. The decline confirmed a breakdown from a bearish ascending wedge pattern, a formation that often precedes continuation to the downside.
Following the loss of the $2,802 support level, the pattern projects a potential additional 16% decline, targeting the $2,460â$2,470 zone if bearish momentum persists. As long as price remains below the former support, downside risk remains elevated.
đ Potential Recovery Scenarios
A stabilization path is still possible. Holding the $2,570 support area could allow buyers to attempt a short-term rebound. For a meaningful shift in structure, ETH would need to reclaim $2,802 as support. Such a move would weaken the bearish thesis and signal renewed strength.
Until then, Ethereum remains in a technically fragile position as markets assess whether selling pressure has fully played out.
đ Disclaimer:
This article is for informational purposes only and reflects personal market observations. It does not constitute financial or investment advice. Readers should conduct their own research and bear full responsibility for any investment decisions.
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