Ethereum (ETH) has entered a decisive phase after a strong sell-off erased much of its recent gains and pushed the price towards the closely watched $2,200 level. The move follows repeated failures to breach the $2,500-$2,550 zone, triggering selloffs.
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With large holders taking opposing positions and on-chain data showing caution, ETH now finds itself at a point where downside risk and rebound potential remain firmly in play.
ETH's price records major losses across the board. Source: ETHUSD on Tradingview
Ethereum Price Structure Weakens as $2,200 Focuses
Ethereum (ETH) fell more than 20% from recent highs, briefly trading below $2,220 before stabilizing.
The decline pushed ETH below the $2,300-$2,400 range and below the major short-term moving averages, shifting near-term control to the sellers. Technical data shows a developing downtrend line around $2,400 to $2,420, an area that should be reclaimed to ease downward pressure.
The $2,200 area is now the main support. An extended break below this level could expose a deeper decline towards $2,050 or the psychological $2,000 mark. Momentum indicators remain cautious, with hourly RSI below 50 and MACD still aligned with bearish momentum, suggesting that buyers have not yet regained control.
FX inflows and liquidations signal distribution risk
On-chain data added to concerns. Exchange flows increased before the outage, with around 600,000 ETH moving across major exchanges in a single day, including a sharp rise to Binance. These capital inflows are often associated with selling, hedging or reducing risk rather than accumulation.
At the same time, derivatives markets have been under severe stress. ETH-related liquidations reached around $280 million over 24 hours, surpassing Bitcoin and confirming that long positions were near recent highs.
The speed of the unwind suggests structural weakness, as spot demand failed to absorb forced selling once support levels gave way.
Whale Longs add a bullish counterweight
Despite the bearish flow data, whale activity tells a more mixed story. According to on-chain analysts, the dormant wallets were reactivated after five years and deposited over 45,000 ETH as collateral to open a large margined long coin position, borrowing around $100 million.
This development highlights a growing divergence at current levels, with some institutions deleveraging while some large holders increase their exposure.
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This clash between whale long positions and bearish FX flows shows the uncertainty around $2,200. A bounce above $2,420 could redirect momentum towards buyers, while failure to hold current support could confirm that distribution pressure remains dominant.
Cover image of ChatGPT, ETHUSD on Tradingview
