Ethereum has fallen to its lowest price levels since late 2023, continuing a downtrend that has stripped the second-largest cryptocurrency of more than 57% of its value since December 2024. The digital asset currently trades near $1,904, struggling to regain momentum after days of consolidation below the psychologically important $2,000 threshold.
Despite the prolonged decline, on-chain data reveals a potentially significant development. Large investors known as "whales" have transferred over 130,000 ETH off cryptocurrency exchanges in the past week alone, according to analytics platform CryptoQuant. This movement typically indicates a growing accumulation trend rather than preparation for selling.
The pattern has been developing steadily as Ethereum's price descended. Analysts suggest institutional players and long-term holders appear to be purchasing at reduced prices, anticipating future appreciation once current selling pressure dissipates. Historical market data shows that substantial whale accumulations have often preceded significant price rebounds.
Ethereum has faced persistent headwinds amid broader macroeconomic uncertainty that has affected both cryptocurrency and traditional financial markets. Trade war concerns have further contributed to market volatility. The cryptocurrency now trades below a multi-year support level, which technical analysts believe could become formidable resistance in coming weeks.
"When whales transfer ETH into private wallets, it often signals accumulation rather than immediate selling pressure," noted prominent analyst Ali Martinez on social platform X. Martinez emphasized that reduced exchange supply has historically contributed to eventual price stability and upside potential.
The cryptocurrency still confronts major technical challenges that must be overcome before a trend reversal can be confirmed. Bulls need to reclaim the $2,000 level quickly to establish momentum toward higher resistance zones. A successful push above this threshold could potentially drive prices toward the $2,250–$2,400 range in subsequent weeks, according to market technicians.
Conversely, failure to maintain current support could trigger further declines. The next significant liquidity zone sits approximately at $1,600, with a breakdown below $1,750 potentially accelerating sell-offs. Such an extended bearish phase would likely postpone recovery prospects substantially.
On-chain metrics indicate diminishing exchange supply, a factor some analysts view optimistically despite current price weakness. The movement of coins to private wallets suggests that substantial investors are positioning for longer time horizons rather than immediate trading. These accumulation patterns frequently emerge during market downturns before eventual recoveries.
With market sentiment still predominantly cautious, the coming weeks remain critical for determining Ethereum's trajectory. Sustained buying pressure will be necessary to reclaim lost technical levels and reverse the prevailing downtrend. While long-term holders appear to be accumulating, short-term volatility likely remains a significant factor.
The increasing whale activity offers a potential counterpoint to prevailing bearish sentiment, though macroeconomic conditions continue to influence overall market direction. Smart money positioning may indicate longer-term confidence despite immediate pressures on price performance.