Ethereum’s Descent: A 29% Fall and Hopes of a Comeback?

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Ethereum, that most capricious of companions, has once again demonstrated its fickle nature, shedding nearly a third of its value in a mere week, and now teeters below the $2,000 mark, a price not seen since the days of yore, when the world was young and optimism was rampant.

The buyers, it seems, have grown weary, their support waning like the last embers of a dying fire. On-chain data, that faithful witness, confirms the growing anguish among Ethereum’s adherents, who now find themselves in a state of quiet despair.

Ethereum Holders Move Back To Selling

The Ethereum holders, those steadfast believers, have now turned to the desperate act of panic selling, their wallets spilling coins like a man drowning in a sea of uncertainty. The Realized Profit/Loss indicator, that reliable barometer of investor sentiment, reveals a surge in losses, a deluge of $1.2 billion in a single day, as if the market itself were weeping.

Such lofty realized losses, one might say, are the very fuel that feeds the beast of pessimism, ensuring that the price continues its downward spiral, as if guided by an unseen hand with a penchant for drama. The more ETH is sold at a loss, the more the price seems to mock the notion of recovery, leaving even the most ardent supporters questioning their faith.

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ETH Long-Term Investors Change Stance

The long-term holders, those venerable figures of the Ethereum community, have also begun to show signs of strain. The HODLer Net Position Change, that reliable indicator of investor resolve, has taken a nosedive, its bars turning red as if in mourning for a lost era. One might wonder if these titans of the market have finally succumbed to the siren call of liquidity, their convictions as fragile as a house of cards in a storm.

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, as if the market itself were playing a cruel joke on its followers.

ETH Price Could Note A Reversal

Ethereum price, that elusive specter, 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, as if the market were a grumpy old man grumbling about the weather. Given the prevailing on-chain and sentiment indicators, ETH remains vulnerable to additional downside in the near term, a testament to the fickle nature of fortune.

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. One can only imagine the collective sigh of relief from those who have already sold, while the rest of us ponder our next move.

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, though one might question whether this is a glimmer of hope or merely a mirage in the desert of despair.

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, though one suspects that the market will soon find new reasons to despair.

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2026-02-06 23:16