Ethereum’s price just lost the key support at the $2,000 mark after several weeks of steady downside pressure observed across the crypto market. While the price continues to decline, on-chain data attributes the drop to the ongoing substantial selling pressure from both big and small investors.
Big Wallets Turn Bearish On Ethereum
With the heightened volatile market conditions, the Ethereum price has seen increased sell-side pressure as investors steadily reduce their exposure. This renewed selling activity is cited among large holders regarded as whales and Sharks.
Joao Wedson, a market expert and verified author, reported that whales and sharks are starting to distribute their positions in an aggressive manner. Large holders are gradually reintroducing ETH into circulation, which frequently indicates a decline in conviction or strategic de-risking during erratic market periods.
This behavior may have an outsized effect due to the fact that distribution from large wallets increases accessible supply and affects price momentum. Furthermore, the expert stated that the pattern raises the question of whether this is just a movement into cryptocurrency exchange reserves. However, the ideal answer remains no.
Crypto exchanges’ reserves, from recent data, remain relatively stable, which excludes that hypothesis. According to Wedson, this is not an operational transfer, but rather a real selling activity from investors. Currently, entities with substantial ETH holdings are persistently lowering their exposure and putting direct pressure on the altcoin price.
In the meantime, the outcome of the current pattern is clear, which includes progressive capitulation, cascading liquidations, and dominant selling pressure. Wedson highlighted that this kind of move does not emerge from retail holders. Rather, it often begins at the top of the structure, with players controlling large volumes.
However, when this happens, the market does not let go of the distraction. As a result, the expert has urged holders to protect their capital by seeking alpha signals and not narratives.
What Lies Ahead For ETH Beneath The $2,000 Price Level
Ethereum losing the $2,000 support level has sparked heightened fear and uncertainty across the market. Prior to the breakdown, Wedson shared an analysis that offers insights into the development and the next direction the altcoin might take. The analysis underscores the significance of the level in Ethereum’s current price performance.
In the post on X, Wedson stated that ETH cannot lose the $2,000 because if it does, it is highly likely to increase its bearish performance. This drop is not being triggered by Binance, the largest cryptocurrency exchange in the world, or any other exchange. The expert claims that the decline is being bolstered by the OG holders; these are investors who truly control and have always controlled the market.
Featured image from Peakpx, chart from Tradingview.com
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