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.

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Ethereum Net Realized Profit/Loss. Source: Glassnode

$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.

Ethereum HODLer Position Change. Source: Glassnode

$ETH Price Could Note A Reversal

Ethereum price is trading near $1,920 at the time of writing after a 29% drop in one week. The move below $2,000 has reinforced bearish structure across multiple timeframes. Given the prevailing on-chain and sentiment indicators, $ETH remains vulnerable to additional downside in the near term.

$ETH is currently holding above the $1,796 support level. If this level fails, price could slide toward $1,671 or lower. Ethereum is already at a nine-month low, last seen in May 2025, increasing the risk of further liquidation-driven selling if support breaks.

Ethereum Price Analysis. Source: TradingView

A recovery scenario remains possible if selling pressure eases. Ethereum could reclaim $2,000, supported by oversold conditions. The Money Flow Index sits well below the 20.0 threshold, indicating selling pressure has likely saturated. Historically, such readings have preceded short-term relief rallies.

Ethereum MFI. Source: TradingView

A similar rebound could unfold if investors refrain from further selling. Holding supply off exchanges may allow $ETH to regain momentum. Under this scenario, Ethereum could push beyond $2,000 and advance toward $2,500. Securing that move would invalidate the bearish thesis and restore market confidence.

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