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Ethereum has seen a sharp correction, with the price falling almost 29% in the past week and falling below the $2,000 mark. ETH is now trading at levels not seen nine months ago, reflecting the extreme weakness of the market.
The decrease in buyer support worsened the conditions, with data on the chain confirming the growing pressure among Ethereum holders.
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Ethereum holders are selling again
Ethereum holders increasingly turned to wild selling as broader market conditions deteriorated. Series data from the Realized P/E Index show that investors sell even if they have a loss. Realized losses exceeded $1.2 billion in 24 hours, highlighting the widespread capitulation as holders prioritized risk reduction over recovery.
These high realized losses often extend declines reinforcing negative momentum. with Sell ​​more ETH With a loss, the price will face additional downward pressure. This behavior indicates that trust is still fragile, limiting Ethereum’s ability to stabilize until sales activity decreases significantly across the network.
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It changes the position of long-term ETH investors
Long-term pregnant behavior reflects a similar stress. The change in HODLer’s net position has decreased, with the bars changing to red, indicating net flows from the long-term portfolios. This change is notable because long-term holders are typically considered the backbone of Ethereum’s market structure and price stability.
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When long-term carriers distribute instead of accumulate, it often indicates deep anxiety. Their decision to sell amid mounting losses indicates growing panic even among doomsday-driven investors. This development adds pressure at the macro level and increases risk Ethereum’s decline deepens Before effective recovery begins.
The ETH price may indicate a reversal
The price of Ethereum is trading near $1,920 at the time of writing this text after a 29% decline in a week. The move below $2,000 reinforced the negative structure in several time frames. Given the prevailing on-chain and sentiment indicators, ETH remains vulnerable to further declines in the near term.
ETH currently Above the $1,796 support level. If this level fails, the price may fall towards $1,671 or lower. Ethereum is already at a nine-month low, last seen in May 2025, raising the risk of a liquidation-led selloff if support breaks.
A recovery scenario is still possible if selling pressure eases. Ethereum can recover $2,000, backed by upsell terms. The Funds Flow Index is well below the threshold of 20.0, which indicates that selling pressure is likely to decrease. Historically, these readings preceded short-term relief demonstrations.
A similar reversal could occur if investors stop selling. A supply delay may allow ETH exchanges to regain momentum. In this scenario, Ethereum could break above $2,000 and advance towards $2,500. Ensuring this move will invalidate the negative hypothesis and restore market confidence.
