Ethereum (ETH) weakness is becoming increasingly visible through whale positioning. The price fell to around $1,740, putting ETH below the whale’s realized price near $1,900.
This gap suggests that many large holders are now content with unrealized losses rather than profits.
The pressure spreads even more. ETH is also trading below the Binance AVWAP quote, currently near $1,700.
Notably, this is the fourth time in six years that the price has traded below this long-term benchmark. Historically, these periods have reflected a deterioration in market confidence and weaker accumulation dynamics.
As a result, whale support appears less reliable than in previous phases of recovery. Unless ETH reclaims these cost basis levels, distribution pressure could remain high and weigh on overall sentiment.
Liquidation Clusters Keep Downside Risks Elevated
Ethereum’s fall below $1,550 did more than break a key support level. It revealed the extent of leverage accumulated in DeFi lending markets.
Once the collateral thresholds were exceeded, over 21,540 ETH worth approximately $34.1 million was liquidated, adding further selling pressure to an already weak market.
This reaction highlights how quickly bearish momentum can strengthen. Lower prices trigger liquidations, while liquidations create additional sales.
Yet perhaps the greatest risk is yet to come. Approximately $547 million in leveraged positions remain exposed at Aave and Maker. If buyers defend these levels, liquidation pressure could ease. Otherwise, volatility could remain high.
Ethereum recovery depends on buyer conviction
Attempts to recover Ethereum continue to face a supply problem. While retail buyers have accumulated aggressively around the $1,550-$1,600 range, the largest holders remain active sellers, preventing demand from fully absorbing available supply.
This imbalance is becoming increasingly visible in spot markets. Periods of positive taker activity emerged, but buying pressure struggled to consistently overcome whale distribution and liquidation-driven selling.
Exchange flows tell a similar story. The outflows suggest some investors are moving ETH into self-holding, although intermittent inflows continue to replenish the exchange supply.
The result is a fragile balance. Buyers are avoiding a deeper collapse, but have not generated enough conviction to reverse the trend. Until spot demand strengthens significantly, stabilization may remain difficult.
Final Summary
- ETH remains vulnerable as whale distribution and liquidation risks continue to outpace emerging spot demand.
- Ethereum needs greater buyer absorption to regain key cost baselines and stabilize market sentiment.
