Ethereum Falls as Retail Investors Sell Off, Whales Quietly Wage Battle

▲ Ethereum (ETH)

Ethereum (ETH) is sending a strong technical signal for a potential market rebound as long-term holders accumulate record levels of supply even amid a bear market that has seen the price fall below the $2,000 level.

According to crypto-focused media outlet NewsBTC on February 12 (local time), Ethereum recently slipped below the key psychological support level of $2,000, entering a vulnerable zone where investor sentiment has sharply deteriorated.

A latest report from on-chain data analytics firm CryptoQuant highlights accumulation addresses with long-term investment conviction. These addresses are defined as wallets holding at least 100 ETH, excluding exchanges and miners, that have been active over the past seven years without any record of asset outflows.

Currently, accumulation addresses hold approximately 27 million ETH, accounting for about 23% of the total circulating supply. Indicators confirm that even amid heightened market volatility, substantial assets continue to move steadily into so-called strong hands.

Notably, Ethereum is trading below the realized price of these accumulation addresses. Historically, such instances—where the market price falls beneath the realized price—have been very rare signals, suggesting that Ethereum is currently in a technically significant undervaluation zone.

In the short term, whether Ethereum can reclaim the $2,000 level is expected to serve as a critical turning point for market sentiment. Attention is focused on whether buyers will defend this range and establish a foundation for a rebound, or whether further corrections will follow depending on macroeconomic conditions and leverage dynamics.

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