Ethereum’s weakness is becoming more apparent as whale positioning shifts. Price has dropped to approximately $1,740, positioning ETH beneath the whale realised price around $1,900. That gap indicates that numerous large holders are currently experiencing unrealised losses instead of profits. The pressure extends further. ETH is currently trading below the Binance listing AVWAP, hovering around $1,700. Notably, this marks just the fourth occasion in six years that the price has dipped below that long-term benchmark. Historically, these periods have indicated a decline in market confidence and a weakening in accumulation dynamics.
Consequently, the reliability of whale support seems diminished compared to earlier recovery phases. Unless ETH reclaims these cost-basis levels, distribution pressure could persist and impact overall sentiment. Ethereum’s decline beneath $1,550 not only shattered a crucial support level. It revealed the extent of leverage that had built up within DeFi lending markets. Once collateral thresholds failed, over 21,540 ETH, valued at approximately $34.1 million, was liquidated, introducing additional sell pressure into an already fragile market. That reaction underscores the rapidity with which downside momentum can amplify itself. Falling prices lead to liquidations, and in turn, these liquidations result in further selling pressure.
However, the most significant risk could still be on the horizon. Around $547 million in leveraged positions continue to be exposed across Aave and Maker. If buyers defend those levels, liquidation pressure could ease. Otherwise, volatility could stay high. Ethereum’s recovery efforts are consistently facing a supply issue. Retail buyers have been accumulating aggressively in the $1,550-$1,600 range. However, larger holders continue to act as active sellers, which is hindering demand from completely absorbing the available supply. That imbalance is becoming more and more apparent across spot markets.
Periods of positive taker activity have surfaced, but buying pressure has faced challenges in consistently surpassing whale distribution and liquidation-driven selling. Exchange flows reveal a consistent narrative. Outflows indicate that certain investors are transferring ETH into self-custody, while sporadic inflows persist in replenishing the supply on exchanges. The result is a delicate balance. Buyers are holding back a more significant downturn, but they haven’t mustered enough confidence to turn the tide. Until spot demand strengthens materially, stabilisation may continue to pose challenges.