Ethereum briefly traded below $2,000 on Monday for the first time since March 29, as the second-largest cryptocurrency continues its steep slide from August's peak. The asset is now hovering near $2,002, roughly 60% below the nearly $5,000 high seen last summer.
Whale holdings climb to nine-week high
Wallets holding at least 100,000 ETH now collectively own 17.41 million Ether, the highest level in nine weeks. That stash accounts for 22.03% of Ethereum's total supply — also a 10-week high. The accumulation suggests large holders are scooping up coins at these lower prices, even as retail sentiment sours.
Retail 'buy the dip' triggers Santiment warning
Market intelligence platform Santiment reported that Ethereum's fall below $2,000 prompted a wave of 'buy the dip' chatter among retail traders. But the firm warned that excessive optimism from the crowd has historically been a bearish signal. Retail traders often misread market direction during volatile spells, Santiment noted, and the current euphoria could be a contrarian indicator.
Martinez eyes $1,560 support
Crypto analyst Ali Martinez sees a clear downside risk if Ethereum fails to hold above $1,850 by the weekly close. He identified two potential targets: first around $1,560, an interim structural support, and then near $1,070, the lower boundary of a multi-year range. A weekly close below $1,850 would accelerate selling pressure, Martinez warned.
The key level to watch is the weekly close. If Ethereum closes below $1,850, the next floor could be around $1,560, with $1,070 in play if that breaks. Meanwhile, the surge in whale accumulation suggests larger holders see value at these levels, but Santiment's warning suggests retail sentiment may be getting ahead of itself.
