Ethereum has suffered a sharp correction, with the price falling nearly 29% over the past week and falling below the $2,000 milestone. $ETH is currently trading at levels last seen nine months ago, reflecting the severe weakness across the market.
The situation is worsening due to a decline in buyer support, and on-chain data confirms that Ethereum holders are under increasing stress.
Ethereum holders return to sale
Ethereum holders are increasingly resorting to panic selling as broader market conditions worsen. On-chain data on realized profit/loss indicators shows that investors are selling behind the scenes. Realized losses soared to more than $1.2 billion in less than 24 hours, highlighting widespread capitulation as holders prioritize risk mitigation over recovery.
This increase in realized losses often strengthens the negative momentum and widens the decline. moreover $ETH If sold at a loss, the price will face further downward pressure. This behavior suggests that trust remains fragile, limiting Ethereum’s ability to stabilize until sales activity meaningfully subsides across the network.
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Ethereum net realized profit or loss. Source: Glassnode
$ETH Long-term investors change stance
The behavior of long-term holders reflects similar stress. The HODLer’s net position change has decreased and the bar has turned red, indicating a net outflow from the long-term wallet. This change is noteworthy as long-term holders are typically considered to be the backbone of Ethereum’s market structure and price stability.
When long-term holders distribute rather than accumulate, it often indicates deep concern. The decision to sell amid mounting losses is a sign of growing panic even among principled investors. This development adds macro-level pressure and increases the risk of Ethereum’s decline deepening before a meaningful recovery begins.
Ethereum HODLer position change. Source: Glassnode
$ETH Prices may reverse
Ethereum’s price is trading around $1,920 at the time of writing after falling 29% in a week. The move below $2,000 strengthened the bearish structure across multiple time frames. Considering common on-chain indicators and sentiment indicators, $ETH Further downside is still likely in the short term.
$ETH It is currently holding above the $1,796 support level. If this level fails, the price could fall below $1,671. Ethereum has already reached a nine-month low since May 2025, and the risk of further liquidation-driven selling increases if support breaks.
Ethereum price analysis. Source: TradingView
A recovery scenario is still possible if selling pressure eases. Ethereum could regain $2,000 on the back of oversold conditions. The money flow index is well below the reference value of 20.0, indicating that selling pressure is likely saturated. Historically, such readings have preceded short-term relief rallies.
Ethereum MFI. Source: TradingView
A similar rebound could occur if investors refrain from further selling. This could be possible by suspending the supply of exchanges. $ETH To regain momentum. Under this scenario, Ethereum could advance above $2,000 and towards $2,500. If this movement is secured, bearish theories will be invalidated and market confidence will be restored.
The article “Ethereum crashes 29% in one week, but reversal signals start to emerge” was first published on BeInCrypto.
