Ethereum (ETH) briefly fell below the $2,000 mark this week for the first time since March 29. Prices have since steadied and are trading around $2,002, but ETH remains nearly 60% below August’s peak near $5,000.
Despite the recent weakness, on-chain data indicate that the largest ETH holders are increasing their positions.
ETH Whales Tighten Grip on Supply
Wallets holding at least 100,000 ETH now collectively own 17.41 million ETH, the highest level in nine weeks. These balances represent 22.03% of Ethereum’s total supply and mark a 10-week high.
Analytics firm Santiment noted that ETH’s dip under $2,000 prompted numerous “buy the dip” calls from retail traders. Historically, crypto markets tend to respond to sharp declines in one of two ways: fear-driven selling or renewed buying as participants seize lower prices as opportunities.
In this instance, the prevailing reaction appears to be the latter. Retail traders have shown growing confidence that the pullback offers a discounted entry rather than signaling deeper downside.
However, Santiment cautioned that excessive retail optimism can be a contrarian bearish indicator. During volatile periods, retail participants often misread market direction, and an uptick in FOMO-driven buying has in the past preceded further downside. The firm suggested that a clearer buying opportunity for longer-term investors may materialize once FOMO subsides and sentiment shifts toward panic, a pattern more commonly observed near market lows.
Downside Targets
Bearish technical signals have not fully disappeared. Crypto analyst Ali Martinez warned that Ethereum could face accelerated selling pressure if it posts a weekly close below $1,850.
Using the broader channel structure as a framework, Martinez outlined two downside targets in the event of a decisive rejection. The first target is roughly $1,560, identified as interim structural support. The second, more severe target sits near $1,070, which corresponds to the lower boundary of ETH’s multi-year trading range.
Traders and investors should weigh both on-chain accumulation by large holders and technical risk levels when assessing short-term outlooks. While whale accumulation can signal confidence among large participants, it is not a guaranteed bullish indicator, especially if retail-driven optimism becomes overly stretched. Monitoring key weekly closes and the behavior of major holders will remain important for gauging potential extension of the current move or the emergence of deeper corrective pressure.