Ethereum has fallen below the critical $2,000 level, reinforcing a broader bearish market structure as selling pressure intensifies across the crypto sector. This breakup comes amid weakening macroeconomic sentiment, continued outflows from risky assets, and declining confidence in near-term crypto demand. Together, these factors have pushed ETH into a defensive phase, with traders increasingly focusing on bearish liquidity zones rather than recovery signals.
Recent data highlighted by Lookonchain indicates three major on-chain liquidation clusters that could shape Ethereum’s next moves. These zones represent areas where leveraged positions could be forced to close if prices continue to fall, which could accelerate volatility. Historically, these liquidation pockets tend to act like magnets during corrective phases, amplifying both panic selling and short-term price fluctuations.
Market sentiment was also affected by reports that Ethereum co-founder Vitalik Buterin had moved and sold ETH. Although these transactions are often linked to funding ecosystem development, charitable initiatives or operational needs rather than outright bearish positioning, they can still influence traders’ psychology. In fragile markets, even neutral fundamental events can trigger disproportionate reactions.
Major On-Chain Liquidation Zones Could Shape Ethereum’s Next Price Action
Lookonchain data highlights three main on-chain liquidation groups that could significantly influence Ethereum’s near-term price dynamics if bearish pressure persists. According to the analysis, Trend Research holds approximately 356,150 ETH, worth almost $671 million, with liquidation levels estimated between $1,562 and $1,698. If the price approaches this band, forced position closures could amplify volatility and accelerate downside momentum.
Another key focus involves Ethereum co-founder Joseph Lubin alongside two large, unidentified wallets. The combined holdings are estimated at approximately 293,302 ETH, or approximately $553 million, with potential liquidation thresholds between $1,329 and $1,368. This area is deeper in the corrective structure and could act as a secondary stress level if broader market weakness continues.
A third cluster attributed to the entity known as 7 Siblings holds approximately 286,733 ETH, valued at approximately $541 million. Their liquidation prices are significantly lower, near $1,075 and $1,029, representing a deeper capitulation scenario if selling pressure intensifies further.
It is important to note that liquidation estimates are highly dependent on leverage assumptions, collateral adjustments and changing market conditions. Nonetheless, these areas provide a useful framework for understanding where volatility might increase, as leveraged positions historically tend to amplify both downward cascades and possible stabilization phases in crypto markets.
Ethereum Price Breakdown Signals Structural Weakness
Ethereum’s weekly chart shows a decisive deterioration in market structure after the loss of the psychologically important $2,000 level. The price has fallen below the 50- and 100-week moving averages, signaling a shift from late-cycle consolidation to a more defensive phase. This type of multi-MA breakdown historically reflects declining momentum rather than a simple short-term correction.
The behavior of the volume reinforces this interpretation. The latest move lower is accompanied by increased sell-side volume, suggesting distribution rather than a passive retracement. When increasing volume coincides with lower highs and lower lows, this generally confirms sustained selling pressure rather than temporary volatility.
Technically, the next key support area appears between around $1,600 and $1,750, where previous consolidation occurred during previous market phases. A weekly close below this range would likely expose deeper pockets of liquidity towards the $1,300 region, aligning with previously identified liquidation clusters.
From a trend perspective, Ethereum is now trading below all major weekly moving averages, which often limits upside attempts unless recovery levels occur quickly. For the recovery to be credible, the price would need to return to the $2,200-$2,400 region and stabilize above it.
Featured image from ChatGPT, chart from TradingView.com
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