🔵 Ethereum Crashes 29% in a Week, but Reversal Signals Start to Appear

Ethereum has suffered a sharp correction, with price falling nearly 29% over the past week and slipping below the $2,000 mark. ETH is now trading at levels last seen nine months ago, reflecting severe weakness across the market.

Diminishing buyer support has worsened conditions, with on-chain data confirming growing stress among Ethereum holders.

🔸 Ethereum Holders Move Back To Selling

Ethereum holders have increasingly resorted to panic selling as broader market conditions deteriorated. On-chain data from the Realized Profit/Loss indicator shows investors selling despite being underwater. Realized losses surged past $1.2 billion within 24 hours, highlighting widespread capitulation as holders prioritize risk reduction over recovery.

Such elevated realized losses often extend declines by reinforcing negative momentum. As more ETH is sold at a loss, the price faces additional downward pressure. This behavior suggests confidence remains fragile, limiting the ability of Ethereum to stabilize until selling activity meaningfully subsides across the network.

🔸 ETH Long-Term Investors Change Stance

Long-term holder behavior reflects similar stress. The HODLer Net Position Change has declined, with bars flipping red, signaling net outflows from long-term wallets. This shift is notable because long-term holders are typically considered the backbone of Ethereum’s market structure and price stability.

When long-term holders distribute rather than accumulate, it often signals deep concern. Their decision to sell amid mounting losses indicates rising panic even among conviction-driven investors. This development adds macro-level pressure and increases the risk that Ethereum’s decline could deepen before a meaningful recovery begins.

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