Ether tumbled below $2,000 for the first time in nearly two months on Saturday, touching $1,975 before a slight recovery. The slide wiped out roughly $241 million in ETH positions over the past day, with longs accounting for $228 million of that total. The selloff accelerated after crypto intelligence platform Santiment flagged a surge in 'buy the dip' calls for Ethereum — a pattern it says often signals further downside when crowd optimism peaks at a local bottom.
The liquidation cascade
Data from Santiment shows about $241 million in ETH positions were liquidated in the past day, overwhelmingly longs. That's a heavy toll for leveraged bulls who expected the dip to reverse. Ether is now down 5% in the last 24 hours, 8% over the past week, and 14% over the past month. It's trading roughly 60% below its all-time high near $5,000, set back in August 2025. The speed of the decline caught many off guard — the token had held above $2,000 since early April.
Santiment's warning on crowd optimism
Santiment reported a noticeable spike in social media chatter calling for a buy-the-dip opportunity on Ethereum. But the firm warned that when a crowd gets too loud about a local bottom, it often means more pain is coming. The pattern has played out before: heavy retail optimism at a price floor tends to precede another leg down. For now, the data suggests traders are piling in too early, and Santiment isn't ruling out a retest of lower levels.
David Hoffman's exit
Bankless co-founder David Hoffman added to the bearish sentiment by selling his entire ETH position. In a statement, Hoffman said that while Ethereum has succeeded as a network, he is unsure about ETH's long-term repricing. His exit is notable because Hoffman has been a prominent voice in the Ethereum community for years. The move isn't a rejection of the technology, but it reflects growing unease among even staunch supporters about the token's ability to reprice higher over time.
What comes next is unclear. The liquidation data suggests leverage is being flushed out, but Santiment's warning hints at more downside if the crowd keeps buying the dip too aggressively. Hoffman's departure adds a psychological weight — if a true believer sells, who stays? No deadline is set, but the market is watching whether Ether can reclaim $2,000 in the coming days or if the selloff deepens.
