Ethereum continues to struggle below the $2,000 level as continued selling pressure and high uncertainty weigh on broader crypto market sentiment. Despite occasional rebound attempts, price action remains fragile, with volatility still elevated after months of corrective momentum. The inability to decisively recover this psychological threshold has increased traders’ caution, particularly as liquidity conditions tighten and macroeconomic uncertainty continues to influence risk appetite on digital assets.
Recent analysis from Darkfost adds additional context to the current market structure. According to the data, the ongoing correction is now affecting all investor cohorts, including the largest Ethereum holders. Notably, the unrealized profit ratio for whale groups has moved into negative territory across the board. Wallets holding between 1,000 and 10,000 ETH have an unrealized profit ratio of around -0.21, while those holding between 10,000 and 100,000 ETH sit at almost -0.18. Even the largest cohort – addresses holding more than 100,000 ETH – fell into negative territory around -0.08.
This development is notable because Ethereum has yet to revisit its April lows, suggesting that the scale of unrealized losses is increasing sooner than in some previous corrective phases. Such conditions can increase market sensitivity, as even traditionally resilient holders may reassess their positioning amid prolonged volatility.
Whale stress increases risk of capitulation as bottom-building signals emerge
Darkfost further notes that if Ethereum extends its decline, large holders could face increasing financial pressure. A sustained decline would compound unrealized losses within whale cohorts, potentially forcing some participants to reduce their exposure or liquidate some of their holdings. Historically, such capitulation events among large investors tend to amplify short-term volatility, particularly when liquidity conditions are already fragile.
However, despite the negative profit ratios now visible among whale groups, Ethereum has so far managed to stabilize above recent local support zones. This relative resilience suggests that while sentiment remains cautious, immediate large-scale distribution from whales has not yet materialized. The distinction is important because unrealized losses do not necessarily trigger sales on their own, unless they are accompanied by liquidity strains, leverage pressures or broader market shocks.
Periods when major holders are under stress have often coincided with medium-term bottoming phases in previous cycles. As weaker hands disappear and debt is absorbed, markets sometimes move toward accumulation regimes characterized by lower volatility and gradual stabilization.
This interpretation must nevertheless be approached with caution. Whale positioning is only one element of market structure, and its confirmation typically requires improved liquidity, stronger spot demand, and favorable macroeconomic conditions before a sustainable recovery can take hold.
Ethereum Price Structure Remains Fragile Below Key Averages
Ethereum continues to trade under clear technical pressure, with the weekly chart showing a continued inability to decisively reclaim the $2,000 region. After the sharp rejection of the 2025 highs near the $4,800 area, price action turned into a sequence of lower highs and weakening rebounds, typically associated with market correction phases rather than accumulation-driven rallies.
Technically, ETH is currently positioned below several major moving averages that previously served as dynamic support. These levels now function as resistance, limiting attempts higher unless a strong rally occurs with expanding volume. The recent decline towards the $1,900 area reflects continued selling pressure, while repeated failures near the mid-$2,000 range reinforce cautious market sentiment.
Volume activity moderated compared to the impulsive rally phase, suggesting reduced speculative participation. Although declining volumes during corrections can sometimes signal seller exhaustion, confirmation of stabilization generally requires sustained buying interest rather than temporary rebounds.
From a structural perspective, immediate support appears concentrated near recent local lows around the $1,800 region, while resistance remains concentrated between around $2,200 and $2,600. Until Ethereum convincingly reclaims these levels, the broader technical outlook remains vulnerable, with consolidation or further decline still plausible.
Featured image from ChatGPT, chart from TradingView.com
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