Ethereum fell below the critical $2,000 level, reinforcing the broader bearish market structure as selling pressure intensified across the cryptocurrency sector. The collapse was caused by weakening macro sentiment, continued outflows of risk assets, and declining confidence in near-term cryptocurrency demand. These factors have pushed ETH into a defensive phase, with traders increasingly focusing on areas of bearish liquidity rather than recovery signals.
Recent data highlighted by Lookonchain points to three major on-chain clearing clusters that could shape Ethereum’s next moves. These areas represent areas where leveraged positions could be forced to close if prices continue to decline, potentially accelerating volatility. Historically, these liquidation pockets tend to act as magnets during correction phases, amplifying panic selling and short-term price fluctuations.
Market sentiment was also affected by reports that Ethereum co-founder Vitalik Buterin had moved and sold ETH. These trades are often tied to funding ecosystem development, philanthropy, or operational needs rather than outright bearish positioning, but they can still influence trader sentiment. In weak markets, even neutral fundamental events can trigger disproportionate reactions.
Key on-chain clearing zones could shape Ethereum’s next price movement.
Lookonchain data highlights three key on-chain clearing clusters that could have a major impact on Ethereum’s near-term price dynamics if bearish pressure persists. According to the analysis, Trend Research holds approximately 356,150 ETH worth approximately $671 million, with liquidation levels estimated to be between $1,562 and $1,698. As prices approach this band, forced position closures can increase volatility and accelerate downward momentum.
Another major focus involves two unidentified large wallets, along with Ethereum co-founder Joseph Lubin. Total holdings are estimated at approximately 293,302 ETH, approximately $553 million, with a potential liquidation threshold of $1,329 to $1,368. This area is located deeper in the correction structure and could act as a secondary stress level if broad market weakness continues.
The third cluster, belonging to an entity known as 7 Siblings, holds approximately 286,733 ETH worth approximately $541 million. Liquidation prices are significantly lower at $1,075 and $1,029, indicating a deeper capitulation scenario if selling pressure intensifies further.
It is important to note that liquidation estimates are highly dependent on leverage assumptions, collateral adjustments, and evolving market conditions. Nonetheless, these areas provide a useful framework for understanding where volatility may increase, as leveraged positions have historically tended to magnify both downside cascades and final stabilization phases of cryptocurrency markets.
Ethereum price analysis reveals structural weaknesses.
Ethereum's weekly chart shows a decisive deterioration in market structure after losing the psychologically important $2,000 level. Prices have fallen below the 50- and 100-week moving averages, signaling a shift from late-cycle consolidation to a more defensive phase. This type of multiple MA analysis historically reflects a decline in momentum rather than a simple short-term correction.
Volume behavior reinforces this interpretation. The recent downtrend has been accompanied by increased sell volume, suggesting a distribution rather than a passive retracement. When increasing volume coincides with decreasing highs and lows, we typically see ongoing selling pressure rather than temporary volatility.
Technically, the next major support area appears to be roughly between $1,600 and $1,750, with pre-consolidation occurring in the early market stages. A weekly close below this range is likely to expose pockets of liquidity deeper into the $1,300 region, consistent with previously identified liquidation clusters.
From a trend perspective, Ethereum is currently trading below all major weekly moving averages, which often limits attempts to the upside unless a recovery level occurs quickly. For confidence to return, the price must recover to the $2,200-$2,400 region and stabilize above.
Featured image from ChatGPT, chart from TradingView.com
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