Ethereum’s native token suffered heavily during the latest crypto market correction, dropping to just above $2,000 earlier today — its lowest level in nearly two months.
Since reaching a monthly high of $2,425, ETH has declined roughly 17%, leaving the market outlook decidedly bearish. While Santiment Intelligence suggests this level of pessimism could set the stage for a significant trend reversal, the present market atmosphere remains fragile and underwhelming.
More Trouble Ahead?
Earlier this week, ETH failed to hold resistance at $2,400, $2,300, $2,200, and $2,100. During today’s sell-off, the next key support at $2,050 finally broke. Popular analyst Ted Pillows warned that this breach opens the door to deeper declines and cautioned that if ETH also loses the psychological $2,000 support, new lows are likely to follow.
Analyst CW highlighted that a substantial number of ETH long positions were liquidated during the drop. CoinGlass data shows that daily liquidations of ETH longs exceeded $250 million, second only to Bitcoin’s roughly $380 million in liquidations.
CW noted that as short positions were closed, Open Interest fell significantly while the Net Position Delta rose. The picture painted was one of high-leverage long traders being forced out, even as bearish positions unwind — a dynamic that could, paradoxically, create a period of reduced volatility once the dust settles.
During the decline, $ETH long positions were liquidated in large amount.
Subsequently, as short positions closed, the Open Interest (OI) decreased and the Net Position Delta increased.
High-leverage long positions are being liquidated, and bearish bets are closing. pic.twitter.com/bTYuT7tjnG
— CW (@CW8900) May 23, 2026
OG Whale Returns
A notable positive for the Ethereum ecosystem is the return of an original whale, according to Lookonchain. On-chain data show this investor — famed for achieving a 376x return on an early ETH purchase roughly a decade ago — has resumed accumulation.
Lookonchain reports the whale has acquired more than $8 million worth of ETH at roughly $2,050 per token. The same investor previously sold holdings when ETH traded above $2,850.
As the market drops, another #EthereumOG who made $34.2M(376x return) is buying the dip on $ETH!
10 years ago, this OG received 12,001 $ETH from ShapeShift at just $7.58 each.
Over a year ago, he sold them for 34.3M $USDC at $2,856, making $34.2M in profit – a 376x return.… pic.twitter.com/vSfrYyo2Bl
— Lookonchain (@lookonchain) May 23, 2026
While the market remains under pressure, renewed accumulation by seasoned holders offers a measure of confidence for long-term participants. Short-term traders should still exercise caution: the loss of key psychological supports could prompt further downside, whereas liquidation-driven shifts in leverage and open interest may eventually stabilize volatility if selling pressure diminishes.