Ethereum has once again fallen below the key $2,000 level, reflecting renewed selling pressure across the broader crypto market. This move puts ETH back in a technically vulnerable zone, where sentiment tends to deteriorate rapidly as traders reassess their risk exposures and liquidity conditions tighten.
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A recent CryptoQuant report provides additional context by analyzing so-called “accumulation addresses,” a specific class of wallets designed to isolate long-term conviction holders. These addresses have no history of outflows, have received at least 100 ETH in their most recent inflow, have recorded multiple incoming transactions, maintain balances of 100 ETH or more, and have remained active for the past 7 years, excluding exchanges, miners, and smart contract wallets.
According to the report, these accumulation addresses currently hold approximately 27 million ETH, which represents approximately 23% of the circulating supply. This concentration suggests that despite the recent volatility, a significant share of Ethereum remains in strong hands.
Still, sustained selling pressure below $2,000 highlights the market’s sensitivity to changes in macro conditions, leverage dynamics, and capital flows, placing Ethereum at an important inflection point in the short term. Whether buyers defend the space or tolerate further declines will likely shape sentiment, volatility expectations, and short-term positioning for Ethereum derivatives and the spot market as a whole.
Ethereum transactions below cumulative address realized price
Ethereum’s recent price action gains additional context from the same CryptoQuant analysis. This highlights how ETH is currently trading compared to the realized price of accumulated addresses. This indicator reflects the average acquisition cost of long-term conviction holders, i.e. wallets that receive ETH continuously without distributing it to the market. Historically, trades below this level have been rare and are often associated with periods of heightened stress.
According to the report, ETH has traded below the realized price of these accumulation addresses only twice in the past nine years. The first occurrence occurred during the 2025 cycle low. A period in which a general market downturn and reduced liquidity pushed prices into deep discount territory. The second case has been unfolding since January 2026. This suggests that current market conditions are once again testing the cost basis of long-term holders.
From a structural perspective, this kind of deviation has two possible interpretations. It could signal capitulation and undervaluation, with strong investors accumulating while weak investors exit. Alternatively, a prolonged period of trading below realized cost levels could reflect persistent macro headwinds, weak demand, or unwinding leverage slowing recovery.
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Price fluctuations that indicate weakness
Ethereum price action continues to show structural weakness on the weekly chart, with ETH recently losing its psychological $2,000 level after failing to break above key moving averages. A break below this zone will bring the price back below the mid-cycle support area, which previously served as both an accumulation area and a breakout area.
ETH remains below its short-term weekly moving average. The long-term trend line appears to be flattening, but this reflects a slowdown in momentum rather than a clear trend continuation. Volume patterns also suggest a distribution, with recent declines accompanied by increased activity and typically associated with de-risking and unwinding positions.
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Historically, similar setups have preceded lengthy integration phases and deeper corrective actions. It typically depends heavily on the broader liquidity situation and macro risk appetite. If buyers fail to regain the $2,000 area quickly, the downside objective could shift to the previous high-capacity node around $1,600-$1,700. Where historical demand has previously occurred.
Conversely, a decisive recovery above that level would improve sentiment. It would also suggest that the recent move was primarily a leverage-driven flash rather than the start of a broader structural downtrend for Ethereum this cycle. Until then, price trends are likely to remain sensitive to changes in macro liquidity and positioning dynamics across the derivatives market.
Featured image from ChatGPT, chart from TradingView.com
