Ethereum has fallen below the critical $2,000 level, reinforcing broad bear market structure as selling pressure intensifies across the crypto sector. This breakdown occurred amid weakening macro sentiment, sustained outflows from risk assets, and declining confidence in near-term crypto demand. A combination of these factors has pushed ETH into a defensive phase, with traders increasingly focusing on downside liquidity zones rather than recovery signals.
Recent data highlighted by Lookonchain points to three major on-chain clearing clusters that could shape Ethereum’s next move. These zones represent areas where continued price declines could force leveraged positions to close and accelerate volatility. Historically, such liquidation pockets tend to act as magnets during corrections, amplifying both panic selling and short-term price fluctuations.
Market sentiment has also been influenced by reports that Ethereum co-founder Vitalik Buterin has transferred and sold his ETH. While these trades are often associated with ecosystem development funding, philanthropy, and operational needs rather than completely bearish positioning, they can still impact trader sentiment. In fragile markets, even neutral fundamental events can cause disproportionate reactions.
Major on-chain liquidation zones could shape Ethereum’s next price move
Lookonchain data highlights three major on-chain liquidation clusters that could have a significant impact on Ethereum’s near-term price movement if bearish pressure continues. According to the analysis, Trend Research reportedly holds approximately 356,150 ETH worth approximately $671 million, with an estimated liquidation level between $1,562 and $1,698. When the price approaches this band, forced position closures can amplify volatility and accelerate downside momentum.
Another important concentration involves Ethereum co-founder Joseph Rubin and two unidentified large wallets. The total holdings are estimated at approximately 293,302 ETH, approximately $553 million, with a potential liquidation basis between $1,329 and $1,368. This zone is deeper in the correction structure and could act as a secondary stress level if widespread market weakness persists.
A third cluster belonging to an entity known as 7 Siblings holds approximately 286,733 ETH worth approximately $541 million. Their liquidation prices are significantly lower at around $1,075 and $1,029, representing a deeper capitulation scenario if selling pressure increases further.
It is important to note that liquidation estimates are highly dependent on leverage assumptions, collateral adjustments, and changing market conditions. Still, these zones provide a useful framework for understanding where volatility is likely to rise, as leveraged positions have historically tended to magnify both the downside cascade and the eventual stabilization phase in crypto markets.
Ethereum price breakdown suggests structural weaknesses
Ethereum’s weekly chart shows that the market structure has deteriorated decisively after losing the psychologically important $2,000 level. Prices have fallen below the 50-week and 100-week moving averages, signaling a shift from late-cycle consolidation to a more defensive phase. This type of multi-MA breakdown has historically reflected a decline in momentum rather than a simple short-term correction.
Volume behavior strengthens this interpretation. The recent downside movement has been accompanied by increased sell-side volume, suggesting diversification rather than passive retracement. When increased volume coincides with lower highs and lower lows, it typically confirms sustained selling pressure rather than temporary volatility.
Technically, the next major support zone is believed to be roughly between $1,600 and $1,750, where previous consolidations occurred early in the market. A weekly close below this range could align with the previously identified liquidation cluster and expose a deeper pocket of liquidity towards the $1,300 area.
From a trend perspective, Ethereum is currently trading below all major weekly moving averages, often limiting any upside attempts unless levels recover soon. For a recovery to be credible, prices need to regain the $2,200-$2,400 region and stabilize above it.
Featured image from ChatGPT, chart from TradingView.com
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