Ethereum Enters 'Capitulation' Phase of Fear, Will 2018 Repeat?

▲ Ethereum (ETH)

Ethereum (ETH) has broken below the so-called “whale floor,” a strong support level defended by large-scale investors, reenacting the market capitulation seen in 2018. As key price supports collapse, fear among investors has reached an extreme, yet some analysts suggest that, based on past cases, this could be the final signal of a bottom formation.

According to NewsBTC, Ethereum has repeatedly failed to reclaim the $2,000 level, facing intense selling pressure. In particular, the breakdown of a crucial support zone regarded as the last line of defense by major whale investors has pushed the market into a state of sharp psychological contraction. Ethereum is currently struggling to hold above the $1,900 level.

Experts note that the current situation closely resembles the capitulation phase observed at the end of the 2018 bear market. Capitulation refers to a phenomenon in which panic-stricken investors dump their remaining holdings into the market, leading to a surge in trading volume and a steep price decline. Paradoxically, such extreme selling pressure is sometimes interpreted as a signal that excess froth has been fully cleared, paving the way for a new upward cycle.

On-chain data analysis shows that Ethereum had been moving sideways below $2,000 for several weeks. However, with the recent breakdown of whale-supported levels, downside volatility has increased. Unlike Bitcoin (BTC), Ethereum’s rebound strength has fallen short of expectations, prompting whale investors to reduce positions or shift to a wait-and-see approach.

Market attention is now focused on whether Ethereum can defend additional support in the low $1,800 range. If the 2018 pattern repeats itself, the current sharp decline and panic selling could present a long-term buying opportunity. However, growing concerns over macroeconomic uncertainty and tightening liquidity across the broader cryptocurrency market caution against premature optimism.

At present, the Ethereum market remains vulnerable to external shocks, lacking clear momentum for a technical rebound. Investors are responding cautiously, closely monitoring real-time indicators such as potential additional whale sell-offs and changes in exchange-held Ethereum balances.

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