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The price of Ethereum has seen strong weakness over the past few sessions, extending losses as market sentiment deteriorates. Recent declines reflect broader bear market conditions as well as the deliberate actions of investors.
Increased selling pressure made the recovery more difficult. At the same time, ongoing distribution risks will push eth lower before the actual stabilization takes place.
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Ethereum owners are starting to sell their holdings
Whale activity has played a major role in Ethereum’s recent decline. Last week, wallets holding between 10,000 and 100,000 eth aggressively reduced their exposure. These large investors sold more than 1.1 million eth during this period. At current prices, the value of this distribution exceeds $2.8 billion.
This widespread selling adds immediate pressure to the spot markets. When whales reduce their holdings, the market absorbs liquidity at lower prices. This behavior often accelerates short-term downward trends.
In the case of Ethereum, the sell-off reinforced bearish momentum and contributed to the recent decline below key technical support levels.
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Economic indicators present a mixed picture for Ethereum. The data indicates that the total supply in profit has fallen below the limit of 50%. As fewer investors receive unrealized gains, concerns often increase. This situation can temporarily reduce the volume of sales, as investors are reluctant to realize losses.
But the same indicator also carries downside risks. If losses deepen further, investor behavior can change quickly. They can sell to avoid further decay. Under these conditions, the price of Ethereum may face new pressures even with attempts at temporary stabilization driven by reduced profit.
The price of ETH still has a long way to go
Ethereum is trading near $2,636 at the time of writing. The asset has decreased by 12.7% in the last two days. This decrease confirmed a falling wedge pattern. This formation indicates the potential for another 16% drop, targeting the $2,465 level if the momentum continues.
The probability of this scenario increased after the loss of key support. ETH broke below the $8022 level, confirming the breakout of the price pattern. Technical structures often gain credibility when support levels fail. As long as the price remains below the previous support level, the continuation of the downward movement remains the dominant risk.
There is a chance for recovery if conditions improve. If Ethereum holds the support level at $2,570, buyers may try to bounce back. A sustained return towards the $2,802 level is needed. Restoring this level as support cancels the bearish scenario, and indicates the return of new strength.
