Ethereum continues to struggle below the $2,000 level as sustained selling pressure and rising uncertainty weigh on overall crypto market sentiment. Despite occasional attempts to rebound, price action remains fragile and volatility remains elevated even after months of corrective momentum. The inability to definitively restore this psychological threshold has led to heightened caution among traders, especially as liquidity conditions tighten and macro uncertainty continues to impact risk appetite across digital assets.
Recent analysis by Darkfost adds further context to the current market structure. According to the data, the ongoing correction is currently impacting all investor cohorts, including Ethereum’s largest holders. In particular, the unrealized gain ratio of the Whale Group has turned negative across the board. The unrealized gain rate for wallets holding 1,000 to 10,000 ETH is approximately -0.21, while for wallets holding 10,000 to 100,000 ETH it is closer to -0.18. Even the largest cohort (addresses holding more than 100,000 ETH) is stuck in negative territory around -0.08.
This development is notable as Ethereum has yet to revisit its April lows, suggesting that the depth of unrealized losses is widening faster than in some previous corrections. In such situations, market sensitivity can increase as even traditionally resilient holders may reassess their positioning amid prolonged volatility.
Stressed whales increase risk of surrender as signs of seafloor formation appear
Dirkforst further notes that large holders could face increased financial pressure if Ethereum’s decline widens. A continued decline could deepen unrealized losses across the whale cohort, forcing some participants to reduce exposure or liquidate some of their holdings. Historically, such capitulation events among large investors tend to amplify short-term volatility, especially when liquidity conditions are already weak.
However, despite now seeing negative returns across the group of whales, Ethereum has so far managed to stabilize above its recent local support zone. This relative resilience suggests that while sentiment remains cautious, large-scale distribution from whales is yet to materialize in the near term. This distinction is important because unrealized losses alone do not necessarily trigger selling unless accompanied by liquidity stress, leverage pressure, or a broader market shock.
Periods when large holders feel stress often coincide with the medium-term bottom formation periods of previous cycles. As weak hands withdraw and leverage loosens, the market may transition into an accumulation regime characterized by lower volatility and gradual stabilization.
Still, this interpretation should be approached with caution. Whale positioning is just one element of market structure, and a sustained recovery typically requires improved liquidity, stronger spot demand, and a supportive macro environment to take hold.
Ethereum price structure remains vulnerable below major averages
Ethereum continues to trade under clear technical pressure, with the weekly chart showing a continued inability to definitively regain the $2,000 area. Following a sharp rebound from the 2025 highs around the $4,800 zone, price behavior has shifted to a series of high declines and weak rebounds, which are typically associated with market corrections rather than accumulation-driven recoveries.
Technically, ETH is currently located below several major moving averages that previously served as dynamic support. These levels are currently acting as resistance, limiting any upside attempts unless a strong pullback occurs along with expanding volume. The recent decline to around $1,900 reflects persistent selling pressure, and repeated failures near the mid-$2,000 level have reinforced the market’s cautious sentiment.
Volume activity has moderated compared to the impulsive rally, suggesting less speculative participation. Declining volume during a correction may indicate seller fatigue, but confirmation of stabilization typically requires sustained buying interest rather than a temporary pullback.
From a structural perspective, immediate support appears to be centered around recent local lows at $1,800, while resistance remains centered between approximately $2,200 and $2,600. Until Ethereum convincingly regains these levels, the broader technical outlook remains fragile, and consolidation or further declines remain possible.
Featured image from ChatGPT, chart from TradingView.com
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